- 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.
indemnity definition by Webster's New World
- 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: French indemnité ; from Late Latin indemnitas ; from Classical Latin indemnis: see indemnify
indemnity definition by American Heritage Dictionary
noun pl. in·dem·ni·ties
- Security against damage, loss, or injury.
- A legal exemption from liability for damages.
- Compensation for damage, loss, or injury suffered. See Synonyms at reparation.
Origin: Middle English indempnite, from Anglo-Norman, from Late Latin indemnitās, from Latin indemnis, uninjured; see indemnify.
indemnity - Business Definition
- An agreement to compensate someone for a loss or damages they incur.
- An exemption from liability.
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.