This paper deals with a commercial agency agreement with a primary focus on the institute of indemnity. Firstly, an insight into the historical development of the contract at the national and international level is given, and then its features and characteristics are stated and explained. Then the historical development of the relatively new institute of indemnity is discussed, with special reference to European and international trends that have influenced its development. Furthermore, the definitions of indemnity are determined and compared in different legal systems with an emphasis on Croatian law. The following describes the formal and substantive requirements that must be met in order for a commercial agent to qualify for indemnity. Contrary to the requirements of acquiring indemnity, there are cases in which the agent will not be entitled to indemnity, i.e.cases in which his right to acquire it is excluded or lost. In addition to defining the concept of indemnity and determining the rights governing the acquisition or loss of it, the paper also explains the method of its calculation in which special attention is paid to case law. The following is a comparison of indemnity with the institutes we associate with the commercial agency agreement. These are commissions, which the agent acquires during the duration of the contractual relationship, and compensation for the damages, whose historical development and origin is closely related with the institute of indemnity. In addition to the above, restraint of trade clause in relation to indemnity will be explained in brief.