Indemnity is compensation to a party for a loss or damage that has already occurred or to guarantee...
indemnification
Indemnification can mean that in policies written on an indemnification basis, the insurer reimburses the insured for claims and claim costs already paid by the insured.
Additional Information
Technically, the insured must not only suffer a loss but must also pay the loss before being indemnified by the insurer. It is also 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.
Related Terms
An indemnity contract is an agreement to pay on behalf of another party under specified...
The indemnitee is the person or organization that is held harmless in a contract (by the...
The indemnitor is the person or organization that holds another (the indemnitee) harmless in a...
To indemnify is to make compensation to an entity, person, or insured for incurred injury, loss, or...
