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 indemnitas, 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.