These indemnification agreements throw liability for due-diligence failures back on to the company issuing the shares or bonds, making a nonsense of an underwriter's gatekeeping role.

ECONOMIST: Face value

My favorite: the buyer demands indemnification for intellectual property issues that arise after the escrow is released, for five years, up to the full amount of the proceeds.

FORBES: Tough Truth About Defensive Exits

The financial industry lobby worked aggressively to make sure the plan included indemnification for them so investors of bonds backed by these mortgages won't sue them after lenders change the terms of the loans.

FORBES: A Subprime Solution

The company, which is based for tax purposes in Zug, Switzerland but also incorporated in Delaware, has maintained its liability is limited under a federal oil-spill law as well as an indemnification from BP.

FORBES: St. Joe Oil-Spill Lawsuit Vs. Transocean Ordered Back To State Court

The Purchase Agreement contains customary indemnification obligations of each party with respect to breaches of their respective representations, warranties and covenants, and certain other specified matters and generally provides that the Company will indemnify the Purchaser for liabilities not related to the Education Business and the Purchaser will indemnify the Company for liabilities related to the Education Business.

FORBES: McGraw-Hill Unloads Education Business for $2.5 Billion

Officials should be aware that in the past several years insurance companies have begun to market specific computer policies that may provide first and third-party coverage for losses associated with cyber incidents, such as costs for data restoration, crisis response, privacy notification and forensic investigation, as well as defense and indemnification arising out of cyber incidents, and business interruption.

FORBES: Disclosing Cyber Security Incidents: The SEC Weighs In