(1) In policies written on an indemnification basis, the insurer reimburses
the insured for claims and claim costs already paid by the insured. Technically,
the insured must not only suffer a loss but must also pay the loss before being
indemnified by the insurer. (2) The agreement of one party to assume financial
responsibility for the liability of another party. Hold harmless agreements
are typically used to impose this transfer of risk.
Links for IRMI Online Subscribers Only: