pre-1900

19th-Century American courts typically would not enforce contracts purporting to indemnify for the indemnitEE’s own negligence.

Legal commentators in the realm of insurance had long been concerned that a person buying insurance have an insurable interest, in other words, something “on the line,” or to lose. This seemingly arising from fear that if insurance exceeds the loss, an insured will benefit from an insurable event. Because they benefit from disaster, they have incentives to make the event occur. We have preferred people gamble on their own success, or at least on things they don’t control. But…

The rise of capitalism encouraged free contracting and, in turn, liberalization of the scope of private indemnity agreements to allow a party to buy indemnity for their own negligence outside the sphere of “insurance.”

Published by IpSecy

bizniz

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