This indemnification clause is included in the Commission approved standard contractual clauses as an example of an additional clause which you could include.
This example is optional – you do not need to include it, and you can choose to add other additional commercial clauses instead of, or in addition to, this example. You can also amend this example.
The clause is a mutual indemnity:
• the importer indemnifies the exporter; and
• the exporter indemnifies the importer;
if either of them is in breach of the standard contractual clauses.
In this context, an “indemnity” means that the party in breach has to fully compensate the other for its losses which arise from its breach. This may be more than just a standard claim for breach of contract, where damages can be claimed.
This clause provides a route for an innocent party to claim back from the other any compensation it has had to pay to a data subject under the standard contractual clauses, arising from a breach by that other party.
This example indemnity is wider than that, and provides additional compensation for any breach of the standard contractual clauses.
Indemnities are often dealt with in the main controller – processor contract between the parties.