Simple definition
Protection or compensation for specified losses or liabilities.
Liability
What Does Indemnity Mean?
Protection or compensation for specified losses or liabilities.
Example in a contract
The vendor provides an indemnity for certain claims.
What indemnity 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 indemnity.
What does indemnity mean in plain English?+
Protection or compensation for specified losses or liabilities.
Where might indemnity 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.