1 : to secure against hurt, loss, or damage. 2 : to make compensation to for incurred hurt, loss, or damage. Other Words from indemnify Synonyms Choose the Right Synonym Example Sentences Learn More About indemnify.
What is an indemnity lawsuit?
Indemnification is the practice of guaranteeing a third party claim against your counterparty. The injured third party sues you and the staffing agency and secures compensation for personal injuries.
What happens when you indemnify someone?
Indemnity or indemnification is a common term that is included in many contracts. In its simplest form, indemnity means that one party in the contract is responsible for compensating another for loss, damages, and/or injury incurred as a result of that party’s actions.
What is the legal meaning of indemnify?
To indemnify another party is to compensate that party for losses that that party has incurred or will incur as related to a specified incident.
Are indemnity clauses enforceable?
Indemnification provisions are generally enforceable. There are certain exceptions however. Indemnifications that require a party to indemnify another party for any claim irrespective of fault (‘broad form’ or ‘no fault’ indemnities) generally have been found to violate public policy.
What’s the opposite of indemnify?
indemnify. Antonyms: fine, mulct, amerce. Synonyms: compensate, se cure, satisfy, reimburse.
Can you indemnify against negligence?
By statute, you cannot have another party indemnify you against damages that result from your sole negligence, or willful negligence. With some exceptions any such clause in a contract is void as a matter of law.
Can you indemnify yourself?
“Indemnify” and “hold harmless” both mean pretty much the same thing: to make the injured party whole again. In California, you have the option to choose – if you are the indemnifying party – to choose to defend yourself.
What does an indemnity clause do?
What Is an Indemnity? An indemnity in a contract is a promise by one party to compensate the other party for loss or damage suffered by the other party during contract performance. An indemnity is also known as a ‘hold harmless’ clause as one party agrees to hold the other party harmless.
Why do you need an indemnity clause?
In most contracts, an indemnification clause serves to compensate a party for harm or loss arising in connection with the other party’s actions or failure to act. The intent is to shift liability away from one party, and on to the indemnifying party.
What are the rights of indemnity holder?
In a contract of indemnity the indemnity holder is entitled to recover from the promise and indemnifier all damages for which he may be compelled to pay in any suit as of any matter to which the promise the indemnity applies while acting within the scope of his authority.
What is the difference between indemnity and liable?
indemnity, the major difference is that a limited liability clause is all about how much liability one party can be assigned if something goes wrong with a contract. In contrast, an indemnity clause is all about which party will have to bear the cost of defending a legal claim.
What does it mean to indemnify someone against something?
indemnify against. indemnify someone or something against something. to agree to protect someone or something against something, such as damage or a lawsuit. Their employer indemnified them against legal action.
What are the obligations of the indemnifying party in a lawsuit?
Reimburse the indemnified party for its paid costs and expenses, referred to as losses. For the indemnifying party, the obligation to defend consists of both: An obligation. The indemnifying party must: A right. The indemnifying party has the right to assume and control the defense of the third-party suit.
What are the exceptions to indemnification?
There are a number of common exceptions to indemnification. They generally relate to circumstances where the indemnified party’s own actions either cause or contribute to the harm that triggers indemnification. For example, an indemnification provision may exclude indemnification for claims or losses that result from the indemnified party’s:
Who benefits from an indemnification clause?
Drafting and negotiating an efficient indemnification provision benefits both the indemnified and the indemnifying party. An indemnification clause may allow: The indemnified party to recover certain types of losses, such as attorney’s fees, which are not typically recoverable under a common law cause of action.
