INDEMNITY - AGENCY

The principal indemnifies the agent for any loss or liability that may be suffered by the agent in the performance of his duties under the agency agreement. For example, if the agent incurs some liability such as legal expenses in the performance of his duty he can claim such costs from the trust account. However, he must provide the principal with a full account of such monies. There is no such indemnity if the costs occur outside the agency agreement.