What does the word indemnify mean in legal terms?

To indemnify another party is to compensate that party for losses that that party has incurred or will incur as related to a specified incident.

What does it mean to indemnify and hold someone harmless?

For example, the term “indemnify” is used when a business hopes to protect itself against claims from a customer’s error, while a hold harmless clause prevents a business from taking any responsibility for a customer’s mistake.

What is indemnity protection?

The word indemnity means security or protection against a financial liability. It typically occurs in the form of a contractual agreement made between parties in which one party agrees to pay for losses or damages suffered by the other party.

Does indemnify mean reimburse?

Black’s Law Dictionary says that indemnify means both “To reimburse (another) for a loss suffered because of a third party’s or one’s own act or default” and “To promise to reimburse (another) for such a loss.” So indemnify can be used in both language of obligation (Acme shall indemnify Widgetco) and language of …

What happens if there is no indemnity clause?

If there is no indemnification clause, then the parties will not be entitled to any contractual indemnification. This does not mean that a party may not be held liable towards another party in a court of law, it just means that contractually a party cannot claim compensation for specific damages or expenses.

Why do you need an indemnity clause?

In most contracts, an indemnification clause serves to compensate a party for harm or loss arising in connection with the other party’s actions or failure to act. The intent is to shift liability away from one party, and on to the indemnifying party.

What does indemnity protect against?

What is an indemnity? Indemnities protect one party from a contract from suffering financial loss in relation to certain eventualities – usually those that would arise from the conduct of the other contracting party, or over which the other contracting party has control.

What does indemnify a contract mean?

“To indemnify” means to compensate someone for his/her harm or loss. In most contracts, an indemnification clause serves to compensate a party for harm or loss arising in connection with the other party’s actions or failure to act.