The Health Care Protection Program (HCPP) supports clients in managing and allocating risks through contracts.  One important risk allocation mechanism is indemnification. An indemnity is an agreement where one party agrees to make another party financially whole after a loss, essentially restoring the indemnified party to the financial position they were in before the loss occurred. Indemnity language in contracts specifies which party will assume financial responsibility in the event of a claim.

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Under the Financial Administration Act and its Regulations (the FAA), approval from the Ministry of Finance is required before signing any contract wherein a Health Authority grants an indemnity. HCPP’s role in this process includes:

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• Reviewing contracts that require approval as per the FAA

• Providing recommendations to health authorities to align indemnity wording principles of fair risk allocation and the Health Authority's risk tolerance, helping to ensure final approval from the Executive Director of the Risk Management Branch

• Coordinating final approval from the Executive Director of the Risk Management Branch for the Health Authority to grant the indemnity

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Whether you require general contract risk management advice, or are seeking approval to grant an indemnity in a contract, we can assist. Our services include reviewing contracts for appropriate risk allocation including, insurance provisions, limitations of liability, waivers/releases, and indemnity clauses (including coordination of formal approval pursuant to the FAA. 

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If you have a contract for the HCPP team to review, please email it to us along with the Contract Review Questionnaire (linked below) at HCPP@gov.bc.ca.

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