indemnity[in dem′ni tē]
- Indemnity is defined as protection from damage, injury, financial loss or legal liability.
When you buy insurance and your insurance protects you from being sued or from financial loss, this is an example of indemnity.
- protection or insurance against loss, damage, etc.
- legal exemption from penalties or liabilities incurred by one's actions
- repayment or reimbursement for loss, damage, etc.; compensation
Origin of indemnityFrench indemnité ; from Late Latin indemnitas ; from Classical Latin indemnis: see indemnify
- Security against damage, loss, or injury.
- An exemption from liability for damages resulting from specified conduct, as in a contract indemnifying a party for the performance of certain actions.
- Compensation for damage, loss, or injury suffered.
Origin of indemnityMiddle English indempnite, from Anglo-Norman, from Late Latin indemnitās, from Latin indemnis, uninjured; see indemnify.
- (law) an obligation or duty upon an individual to incur the losses of another.
- (law) the right of an injured party to shift the loss onto the party responsible for the loss.
- (insurance) a principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.
indemnity - Legal Definition
- A duty, typically arising from contract, in which one promises to make good another’s financial loss or liability, resulting from a particular event or contingency.
- The act of making good another’s financial loss or liability, resulting from the occurrence of a particular event or contingency.
- The injured party’s right to claim payment from the party with the duty.