Indemnity

Definition

  • An agreement where one party is contractually obligated to assume liability and compensate or provide reparation for damages or losses. Commonly used in the insurance industry, a company will agree to indemnify another for insured losses.

Synonyms
protection, compensation, restitution, reimbursement, security against loss

Related Terms and Acronyms

  • Aggregate Limit of Liability Definition,
    • A restriction on the amount of liability an insured entity can place on an insurer in a specific time period.
  • Indemnity Insurance Definition,
    • A class of insurance that covers liability for damages, which includes insurance types such as malpractice insurance and errors and omissions insurance.
  • Liability Insurance Definition,
    • Insurance that provides coverage for damages caused by an individual or entity's negligence or legal responsibilities.
  • Loss Settlement Amount Definition,
    • The percentage of damages an insurer is contractually obligated to pay for after a claim.
  • Period of Indemnity Definition,
    • The amount of time where insurance benefits are required to be paid by an insurance policy.
  • Specific Performance Definition,
    • A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract. It is available only where the remedy of damages cannot afford adequate relief to the plaintiff.
  • Subrogation Definition,
    • When an insurance company has the right to take legal action against a third party for damages.
  • Waiver of Subrogation (WOS) Acronym,
    • A provision that prevents an insurer from pursuing a third party for damages to insured property.
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