Indemnification is a promise to cover someone else's losses from third-party claims. One-way indemnification puts that obligation entirely on a single party, which is common in supplier contracts drafted by the buyer.
A mutual version splits it along the line of who controls the risk: each party covers claims arising from its own IP, its own negligence, and its own breach. That is defensible in both directions and is usually accepted without much argument, because neither side is asking the other to insure something it cannot influence.
Two things to verify. First, that "mutual" is mutual in substance and not just in the heading — the two sides' obligations should be genuinely symmetric. Second, how it interacts with the liability cap: an indemnity carved out of the cap can quietly become the largest exposure in the agreement.
"Each party shall defend and indemnify the other against third-party claims arising from its own negligence, willful misconduct, or breach of this Agreement."
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Definitions and negotiation guidance here are educational business decision support, not legal advice. Consult an attorney about how any clause applies to your own agreement.