The agreement requires clients to defend and indemnify Plaid against all third-party claims, regulatory investigations, damages, and legal costs arising from the client's legal compliance failures, use of Services, Permitted Users' use of Services, or violations of End User agreements.
This analysis describes what Plaid'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 provision requires clients to bear the full cost of defending Plaid against third-party and regulatory claims arising from the client's operations, including regulatory investigations, which is a broad indemnification scope that extends beyond direct contractual breaches to encompass regulatory proceedings.
Under this clause, clients must defend and indemnify Plaid against all third-party claims and regulatory investigations arising from the client's use of Services, including privacy law violations and End User agreement breaches. The indemnification obligation applies to claims brought against Plaid as a result of the client's conduct, including by regulators.
Cross-platform context
See how other platforms handle Broad Client Indemnification Obligation and similar clauses.
Compare across platforms →"The Client will defend, indemnify and hold Plaid harmless from and against all third-party claims, actions, proceedings, regulatory investigations, damages, losses, judgments, settlements, costs and expenses (including attorneys' fees), arising from or in connection with: (i) Client breach of any laws or regulations (including with respect to privacy); (ii) Client's or any Permitted User's use of the Services and Output; or (iii) Client's violation of any agreements it has with any End User.Excerpt from Plaid's Terms of Use
REGULATORY LANDSCAPE: Indemnification clauses covering regulatory investigations engage the full spectrum of laws applicable to the client's operations, including privacy laws such as GDPR, CCPA, and state data protection statutes, as well as financial services …
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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This provision requires clients to bear the full cost of defending Plaid against third-party and regulatory claims arising from the client's operations, including regulatory investigations, which is a broad indemnification scope that extends beyond direct contractual breaches to encompass regulatory proceedings.
Under this clause, clients must defend and indemnify Plaid against all third-party claims and regulatory investigations arising from the client's use of Services, including privacy law violations and End User agreement breaches. The indemnification obligation applies to claims brought against Plaid as a result of the client's conduct, including by regulators.
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