How does an indemnification clause in an Independent Contractor Agreement help us?

An indemnification clause in general says that the person who agrees to indemnify the other will cover any legal damages that may happen should that person get sued or have to pay money. In other words, if I agree to indemnify you, then if you get sued and lose, I have agreed to pay your damages. Indemnification clauses are very powerful tools for people who want to pass the ball so to speak should litigation arise. I think in your context, you are seeking to hire someone on the basis of them being an independent contractor as opposed to an employee. I would imagine that if any person you were hiring was your employee (distinctly different than an independent contractor legally speaking) then if that person caused damages to another then you would be liable because of the doctrine of respondeat superior. However, if you hire someone as an independent contractor and they cause damages on someone else, and you have an agreement with your independent contractor for indemnification, then if you get sued and lose, then you can sue the independent contractor based on your indemnification clause and get your money from him/her.