What does it mean to indemnify someone?

: to protect (someone) by promising to pay for the cost of possible future damage, loss, or injury. : to give (someone) money or another kind of payment for some damage, loss, or injury. See the full definition for indemnify in the English Language Learners Dictionary. indemnify. transitive verb. 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 is an example of indemnity?

Indemnity is compensation paid by one party to another to cover damages, injury or losses. … An example of an indemnity would be an insurance contract, where the insurer agrees to compensate for any damages that the entity protected by the insurer experiences. How do indemnities work?
Indemnity is a contractual agreement between two parties. In this arrangement, one party agrees to pay for potential losses or damages caused by another party. … With indemnity, the insurer indemnifies the policyholder—that is, promises to make whole the individual or business for any covered loss.

How do you indemnify someone?

To indemnify someone is to absolve that person from responsibility for damage or loss arising from a transaction. Indemnification is the act of not being held liable for or being protected from harm, loss, or damages, by shifting the liability to another party. Shall indemnify meaning?

to pay someone for loss or damage that they have suffered, or to formally promise to do this: idemnify sb against sth The insurer will indemnify the policyholder against loss of or damage to the motor car. … The customer shall fully indemnify the company against any costs or expenses.

Frequently Asked Questions(FAQ)

Shall indemnify and hold harmless meaning?

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.

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.

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Who should pay for indemnity?

Who pays for indemnity insurance? Both buyer and seller of a property can pay for an indemnity policy. Often, house sellers take out an indemnity policy to cover the cost implications of the buyer making a claim against their property. The insurance requires a one-off payment and lasts forever.

How many parties are there in contract of indemnity?

two parties A contract of guarantee always has three parties; they are, the creditor, the principal debtor and the surety; whereas a contract of indemnity has two parties, the indemnifier and the indemnity holder.

What is an accident indemnity clause?

What is the opposite of indemnify?

indemnify. Antonyms: fine, mulct, amerce. Synonyms: compensate, se cure, satisfy, reimburse.

How do you use indemnify in a sentence?

Indemnify in a Sentence

  1. Since Kurt was driving drunk, the insurance company will not indemnify him from the property damage he caused.
  2. The trucking company will indemnify the victim of the car accident caused by the sleeping trucker.

How do you use the word indemnity?

a sum of money paid in compensation for loss or injury.

  1. Political exiles had not been given indemnity from prosecution.
  2. They paid an indemnity to the victim after the accident.
  3. Under this treaty, they were to pay an indemnity for five million dollars.
  4. The government paid the family an indemnity for the missing pictures.

Is an indemnity a debt?

A proper indemnity creates a primary obligation or liability to pay a debt. … If it is a debt, the giver of the indemnity is liable for whatever loss and damage is suffered by the other party, regardless of whether or not it was reasonably foreseeable or could have been mitigated.

What is difference between indemnify and reimbursement?

Indemnity policies pay a selected daily benefit as soon as you qualify under the claim. That amount is paid regardless of the actual cost of care, be it at home or in a long-term care facility. … Reimbursement policies will pay up to a daily benefit limit or amount depending on the cost of care.

Can you indemnify yourself?

Indemnify and hold harmless both mean pretty much the same thing: to make the injured party whole again. … In California, you have the option to choose – if you are the indemnifying party – to choose to defend yourself.

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What can you indemnify against?

Depending on the way the clause is drafted, indemnity can cover: all loss caused by the trigger event: the clause can be drafted very broadly, so that the indemnifying party has to pay for all loss ‘arising out or in connection’ with the trigger event, no matter how remote or indirect it may be.

What does keep indemnified mean?

In an indemnity, what is the effect of ‘keep indemnified’ and ‘on a continuing basis’? An indemnity is an agreement by one party to bear the cost of certain losses or liabilities incurred by or claims brought against another party in specified circumstances.

What is a personal indemnity form?

Professional indemnity insurance, often referred to as professional liability insurance or PI insurance, covers legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded, if you are alleged to have provided inadequate advice, services or designs that cause your client to …

Can both parties indemnify each other?

In a mutual indemnification, both parties agree to compensate the other party for losses arising out of the agreement to the extent those losses are caused by the indemnifying party’s breach of the contract. In a one-way indemnification, only one party provides this indemnity in favor of the other party.

When may an indemnity clause exist in an agreement?

Thus, it can be understood from reading Section 124 of the Contract Act that indemnity can be claimed when one party gives assurance to the other party to provide protection from any kind of loss or damage that has accrued or incurred by that other party due to the action of the person who is giving such assurance.

What is contract indemnity?

Indemnity. Indemnity means making compensation payments to one party by the other for the loss occurred. Description: Indemnity is based on a mutual contract between two parties (one insured and the other insurer) where one promises the other to compensate for the loss against payment of premiums.

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When you agree to indemnify and hold harmless?

When properly written, the intent of a hold harmless or indemnification agreement is to impose on one party the responsibility to pay all liability, damages, costs, expenses, and even attorney’s fees for the other party to the agreement.

Is indemnity only for third party claims?

Indemnification is only for Third Party Claims Unless Clause Expressly States it applies to First Party Damages. An indemnification clause will only apply to liability for claims brought by third parties. It will not apply to claims between the contracting parties.

What does it mean to defend and indemnify?

The duty to defend triggers an obligation to act when a claim, which is covered by the indemnification provision in the contract, is brought by a party against the indemnitee. Most states consider the duty to indemnify and to defend to be distinct obligations. …

Are indemnity forms legal?

Generally, an indemnity agreement is enforceable if a person freely and voluntarily agreed to it, except if it is against public policy. Public policy states a person may not contract out of gross negligence or wrongful misconduct.

What happens if there is no indemnification 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.

Who is the indemnifying party?

“Indemnified Party” means any Person seeking indemnification from another Person pursuant to Article VIII. “Indemnifying Party” means any Person against whom a claim for indemnification is asserted by another Person pursuant to Article VIII. “Third Party Claim” has the meaning set forth in Section 8.7.

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