Indemnification clause in Property Management agreement

[Bracha Pushkin]

Hi all,

Hope you can shed some light on the following and perhaps help prevent a mistake that a good friend of mine might be in the midst of making. My friend is about to sign a Property Management agreement, which contains the following indemnification clause:

Owner will carry its customary insurance as shall be acceptable owners mortgage lender. Agent shall carry adequate, reasonable and customary insurance, including any insurance required by applicable law. In the performance of its duties hereunder, Agent will comply with all applicable laws. Owner and Agent each agree to indemnify the other for its (and its agents' employees) negligence or willful misconduct and/or breach of this agreement.

The is actually the first time I am seeing such a clause and I am a bit weary, especially with regards to the indemnification sentence. Are any of you familiar with this type of wording? What exactly does it mean and is it safe to sign, as is, or would you have any suggestions as to how it would be best to modify it?

Your help is greatly appreciated.

Thank you,

Bracha