Definition

1. Noun:
   • A sum of money paid in compensation for loss or injury: "Indemnity" refers to a financial payment made to cover a specific loss, damage, or injury.
   • Legal exemption from liability for damages: "Indemnity" can mean a formal security or protection against legal responsibility for future losses or penalties.
   • Protection against future loss: More broadly, "indemnity" signifies a state of being protected or insured against potential harm or financial burden.

Usage Examples

• Noun:
  • The insurance company paid an indemnity to the homeowner after the fire. (A sum of money as compensation.)
  • The contract included a clause of indemnity for the contractor. (Legal exemption from liability.)
  • He sought indemnity against any legal costs arising from the dispute. (Protection against future loss.)

Advanced Usage

• "Letter of indemnity": A document guaranteeing compensation for a potential loss, often used in shipping or banking.

  • The bank required a letter of indemnity to release the goods without the original bill of lading.

• "To hold harmless": A legal phrase synonymous with providing indemnity against liability.

  • The agreement states that Party A will indemnify and hold harmless Party B from any claims.

Variants and Related Words

• Indemnify (verb): To compensate someone for harm or loss, or to secure against legal responsibility.

  • The company agreed to indemnify its directors against lawsuits.

• Indemnification (noun): The action of compensating for loss or damage; the process of being indemnified.

  • She received full indemnification for her stolen property.

Synonyms

• Compensation: Something, typically money, awarded to someone for loss or injury.
• Reimbursement: Repayment for money spent or lost.
• Security: Protection or assurance against a contingency.

Related Phrases

• Indemnity insurance: A type of insurance that protects the policyholder against liabilities or losses.

  • Professional indemnity insurance is essential for consultants.

• Act of indemnity: A statute passed to exempt persons from legal penalties for specific past acts.

  • Parliament passed an act of indemnity for the soldiers involved.

Noun

1. a sum of money paid in compensation for loss or injury
2. legal exemption from liability for damages
3. protection against future loss