Simple definition
A provision that may require one party to cover specified losses, claims, or costs.
Liability
What Does Indemnification Mean?
A provision that may require one party to cover specified losses, claims, or costs.
Example in a contract
The agreement contains an indemnification clause.
What indemnification means in a contract
In contracts, this language often appears where the parties allocate responsibility for losses, claims, or financial exposure. Read it together with any liability cap, indemnity, insurance, and damages language.
Why it may matter
It can change who bears costs when something goes wrong and whether that exposure is limited or carved out. Review the exact language rather than relying on the label alone.
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FAQ
Questions about indemnification.
What does indemnification mean in plain English?+
A provision that may require one party to cover specified losses, claims, or costs.
Where might indemnification appear in a contract?+
In contracts, this language often appears where the parties allocate responsibility for losses, claims, or financial exposure. Read it together with any liability cap, indemnity, insurance, and damages language.
Is this definition legal advice?+
No. ClauseInsight provides concise informational explanations. The legal effect of a term depends on the complete document, facts, and applicable law.