Indemnification: Understanding an Indemnification Clause Indemnifications in legal terms are contractual provisions where one or both parties agree to compensate the other for any harm or loss resulting from damages caused by a third party Insurance companies may require businesses to indemnify their vendors for liability coverage
Indemnification - Definition, How it Works, Importance Indemnification is a legal agreement by one party to hold another party blameless – not liable – for potential losses or damages It is similar to a liability waiver but is usually more specific, applicable only to particular items, circumstances, or situations, or in regard to a particular contract
What is Indemnification? A Comprehensive Guide - UpCounsel In the business world, indemnification is a safety net, providing parties with financial protection from loss or damages that result from another’s actions This often leads to more desirable business relationships Indemnification should not be confused with a warranty or insurance
What Does Indemnification Mean in Contract Law? - LegalMatch Indemnification, also called indemnity, is an implementation by one party (the indemnifying party) to pay the other party (the indemnified party) for specific expenditures and costs, generally originating from third-party lawsuits
indemnify | Wex | US Law | LII Legal Information Institute To indemnify, also known as indemnity or indemnification, means compensating a person for damages or losses they have incurred or will incur related to a specified accident, incident, or event Typically, parties make a written agreement in which one party (indemnitor) promises to indemnify the other party (indemnitee) for future specified losses
What is Indemnification? Indemnification Clauses Explained Indemnification clauses, also known as indemnity agreements, are contractual promises in which one party commits to compensating another for any losses incurred These serve as a protective measure that addresses uncertainties and potential risks associated with the contract
Indemnification Clause 101: A Simplified Guide - Hithentic An indemnification clause is a commercial clause in a contract that helps allocate risk between the parties involved; it allows one party to compensate another party for any losses they have suffered Basically, it’s a way to shift risk from one party to another
Understanding Indemnification Provisions - McNeelyLaw LLP Indemnification provisions are crucial components of many contracts, serving as powerful tools for risk allocation between the parties These clauses, which are often heavily negotiated, can significantly impact the financial responsibilities of businesses and persons in various scenarios