indemnification
money or legal protection that pays someone back for a loss or for costs they had to pay
The act or process of compensating someone for a loss, damage, expense, or legal liability.
a legal promise that someone else will pay if certain claims, losses, or costs happen
A legal or contractual arrangement that protects someone from certain losses or liabilities by requiring another party to cover them.
- Base: indemnification
- Plural: indemnification, indemnifications
defense and indemnification
1duty to defend and pay
a legal duty to help fight a claim and also cover certain costs or losses
- The contract requires defense and indemnification for claims arising from the subcontractor's work.
- Defense and indemnification are related, but defending a lawsuit can be required before anyone knows the final loss.
- The insurer disputed its defense and indemnification duties after the lawsuit was filed.
- The clause covers defense and indemnification.
- The company asked for defense and indemnification in the lawsuit.
indemnification agreement
1separate promise to indemnify
a legal agreement promising to cover another person's or company's certain losses or costs
- The board approved an indemnification agreement for each outside director.
- Before investing, she asked the startup to sign an indemnification agreement covering securities claims.
- The indemnification agreement explained which legal expenses the company would advance.
- The director signed an indemnification agreement with the company.
- The agreement promised indemnification for some lawsuits.
indemnification claim
1formal demand for coverage
a formal request asking another party to pay under an indemnification promise
- The buyer filed an indemnification claim after discovering unpaid taxes owed by the acquired company.
- The notice described the indemnification claim and the amount of legal fees sought.
- The insurer denied the indemnification claim because the loss was excluded by the policy.
- They made an indemnification claim under the contract.
- The company denied the indemnification claim.
indemnification clause
1contract term covering losses
a part of a contract saying who must pay if certain losses or claims happen
- The indemnification clause requires the supplier to cover claims caused by defective parts.
- Her lawyer asked to narrow the indemnification clause before she signed the lease.
- A one-sided indemnification clause can make a small vendor responsible for very large lawsuits.
- Read the indemnification clause carefully before signing.
- The contract has an indemnification clause about legal costs.
indemnification obligations
1duties to cover losses
legal duties to pay or protect another party for certain losses or claims
- The indemnification obligations survive termination of the agreement.
- The purchase price was reduced because the seller's indemnification obligations were capped.
- The court examined whether the subcontractor's indemnification obligations applied to the accident.
- The contract explains the company's indemnification obligations.
- Some indemnification obligations continue after the contract ends.
mutual indemnification
1both sides cover losses
a contract rule where both sides promise to cover the other side for certain losses
- The service contract uses mutual indemnification: each company covers claims caused by its own negligence.
- Mutual indemnification sounded fair, but the lawyer still checked whether the obligations were truly equal.
- The parties agreed to mutual indemnification for third-party intellectual property claims.
- The contract includes mutual indemnification.
- Both companies accepted mutual indemnification.
right to indemnification
1entitlement to be covered
the legal right to have someone else cover certain losses or legal costs
- State law gives corporate officers a right to indemnification in some lawsuits.
- The court held that the employee had no right to indemnification because he acted outside the scope of his job.
- The bylaws preserved her right to indemnification after she left the board.
- The director had a right to indemnification.
- The contract gave him a right to indemnification for legal fees.