The "just a formality" line really bugs me. I once contracted for a place that asked me to indemnify them against all fines or taxes due against them in relation to my contract with them. So, I asked them to amend it to include language that excluded cases where they are informed that they are breaking the law, where they agree to a settlement with a third party, where they refuse to defend an action, where they fail to notify me immediately after an accusation is made, etc. They refused, saying it's just a formality.

I can understand why their lawyers were keen on having people sign it, as they were so clearly abusing their relationships with contractors, but I don't understand why so many of my colleagues did.