This response came to us from the MIA.
Yes we have seen this agreement before. Essentially, the agreement is meaningless because any indemnity offered to you in section 2.1 is taken away in section 2.3 because you have your own liability insurance with MIA. The net effect is the same as if you had not signed the agreement. If your employees are sued while working for you, MIA will defend you and the employees.
Please feel free to call me or our risk manager if you would like to discuss this in more detail.
Regards,
Mitch