What does Indemnity mean? Read on to discover the definition & meaning of the term Indemnity - to help you better understand the language used in insurance policies.
Compensation to a party for a loss or damage that has already occurred, or to guarantee through a contractual clause to repay another party for loss or damage that might occur in the future. The concept of indemnity is based on a contractual agreement made between two parties in which one party (the indemnitor) agrees to pay for potential losses or damages caused by the other party (the indemnitee).
We hope the you have a better understanding of the meaning of Indemnity.