Indemnity Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Indemnity, written in plain English, along with examples of how it is used.
What is Indemnity?
Compensation for loss,damages or injuries that have already occurred or will occur in future.
History and Meaning of Indemnity
Indemnity is a legal term that refers to compensation for loss, damages or injuries that have already occurred or are anticipated in the future. The concept of indemnity dates back to Ancient Rome, where it was a common practice to provide financial compensation to individuals who suffered losses or damages. Over time, the practice of indemnity evolved and became an important legal principle, allowing individuals and organizations to protect themselves from unforeseen losses or damages.
In modern times, indemnity is often used in contracts and insurance policies to allocate risk between parties. For example, a construction contract might include an indemnity clause, requiring one party to compensate the other for any losses or damages that occur during the construction process.
Examples of Indemnity
A homeowner's insurance policy includes an indemnity clause, which provides compensation for any damages to the insured's property.
A company signs a contract to lease office space with an indemnity clause, which requires the company to compensate the landlord for any damages to the property during the lease term.
A car rental agreement includes an indemnity clause, which requires the renter to compensate the rental company for any damages to the vehicle during the rental period.
Legal Terms Similar to Indemnity
Liability: Liability is a legal term that refers to the responsibility of one party to compensate another party for losses, damages or injuries.
Damages: Damages refer to the compensation awarded to a party who has suffered losses or damages due to the actions of another party.
Insurance: Insurance is a contract between an individual or organization and an insurance company, which provides financial compensation for losses or damages.