- 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.
compensation, protection, 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.