What Is Indemnifying Party Means?

If you are the indemnified party, an indemnification clause is simply a promise by the other party to cover your losses if they do something that causes you harm or causes a third party to sue you. ... Indemnify and hold harmless mean the same thing — to make whole after causing a loss.

What does indemnity mean in simple terms?

What's an indemnity? An indemnity is a promise by one party to compensate another for the loss suffered as a consequence of a specific event, called the 'trigger event'.

What is the purpose of indemnification?

Indemnification clauses are clauses in contracts that set out to protect one party from liability if a third-party or third entity is harmed in any way. It's a clause that contractually obligates one party to compensate another party for losses or damages that have occurred or could occur in the future.