Client Pays Costs from Its Liabilities
Any cost which the Contractor has paid or will pay to Others as a result of an event for which the Client is liable is paid by the Client. The Client indemnifies the Contractor for third-party costs arising from Client-liable events.
If an event occurs that is the Client's liability (e.g., an Employer's risk event), and the Contractor incurs costs to third parties as a result, the Client reimburses those costs.
The Contractor must demonstrate the causal link between the Client-liable event and the third-party costs. The Contractor should also mitigate costs even if the Client is ultimately liable.
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