If your use of Lime's service causes Lime to face a legal claim from someone else, you agree to pay Lime's legal costs and any settlement or damages associated with that claim.
This analysis describes what Lime's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This clause means that if you cause an accident or otherwise violate the terms while using Lime, you could be personally responsible for Lime's legal costs in addition to your own, which could be substantial.
Interpretive note: The enforceability of the 'alleged violation' trigger and the overall scope of the indemnification obligation may vary by jurisdiction, particularly in EU member states and in US states applying unconscionability doctrine to standard form consumer contracts.
If you are involved in an incident while using Lime and a third party sues Lime as a result, you may be required to cover Lime's legal fees and damages, creating potential personal financial exposure beyond the cost of the ride itself.
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"You agree to defend, indemnify, and hold harmless Lime and its officers, directors, employees, partners, contractors, agents, licensors, and suppliers from and against any claims, actions or demands, liabilities and settlements including without limitation, reasonable legal and accounting fees, resulting from, or alleged to result from, your use of the Services in a manner that violates or is alleged to violate this Agreement or any applicable law or regulation.— Excerpt from Lime's Lime Terms of Service
(1) REGULATORY LANDSCAPE: Consumer indemnification clauses in standard form contracts face scrutiny under unconscionability doctrine in multiple US jurisdictions and may conflict with EU consumer protection standards, including the EU Unfair Contract Terms Directive, which identifies broadly drafted indemnification obligations in consumer contracts as potentially unfair. (2) GOVERNANCE EXPOSURE: Medium. The indemnification clause is broadly worded to cover not only actual violations but also 'alleged' violations, meaning a frivolous third-party claim could trigger indemnification obligations before any finding of liability. This breadth may be challengeable under applicable consumer protection law. (3) JURISDICTION FLAGS: EU member states may regard a broad consumer indemnification clause in a standard form contract as an unfair term under the Unfair Contract Terms Directive, particularly where the obligation is not reciprocal or proportionate. California courts have applied unconscionability analysis to limit enforcement of one-sided indemnification clauses in consumer agreements. (4) CONTRACT AND VENDOR IMPLICATIONS: Risk and insurance teams should assess the interplay between this indemnification obligation and Lime's own liability insurance, as well as any personal liability coverage riders that users may have. (5) COMPLIANCE CONSIDERATIONS: Legal teams should evaluate whether the indemnification clause satisfies applicable standards for conspicuous disclosure in standard form consumer contracts, and whether the 'alleged violation' trigger is enforceable under governing law.
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This clause means that if you cause an accident or otherwise violate the terms while using Lime, you could be personally responsible for Lime's legal costs in addition to your own, which could be substantial.
If you are involved in an incident while using Lime and a third party sues Lime as a result, you may be required to cover Lime's legal fees and damages, creating potential personal financial exposure beyond the cost of the ride itself.
ConductAtlas has identified this type of provision across 10 platforms. See the full comparison.
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