Indemnification: meaning, definitions and examples

💰

Add to dictionary

indemnification

[ɪnˌdɛmnɪfɪˈkeɪʃən ]

Definitions

^{Context #1 | Noun}

legal term

The action of indemnifying someone against harm, loss, or damage; the act of compensating for a loss suffered by another party.

Synonyms

compensation, protection, reimbursement.

Which Synonym Should You Choose?

Word	Description / Examples
indemnification	This word is often used in legal or formal contexts to describe the action of compensating someone for harm or loss, usually through financial payment or insurance. The contract included a clause for indemnification in case of any legal disputes. After the accident, the company sought indemnification from its insurance provider.
compensation	Compensation is a more general term that can be used in everyday language to refer to payment or benefits given in recognition of loss, suffering, or injury. Workers received compensation for their overtime hours. The victim was awarded a large sum of money as compensation for her injuries.
reimbursement	Reimbursement specifically refers to the act of paying back money that has been spent on behalf of another person or entity, often in business or travel contexts. Employees can submit receipts for reimbursement of travel expenses. She received reimbursement for the medical expenses from her insurance company.
protection	Protection is used to describe measures taken to guard against harm or damage, often implying preventive actions rather than post-damage compensation. The policy offers protection against property theft and natural disasters. Wearing a helmet provides protection during biking.

Examples of usage

Companies often provide indemnification to their directors and officers for legal expenses incurred in the course of their duties.
The insurance policy included an indemnification clause to protect the policyholder from financial losses.

^{Context #2 | Noun}

finance

The protection or insurance against possible financial losses.

Synonyms

coverage, insurance, security.

Which Synonym Should You Choose?

Word	Description / Examples
indemnification	Indemnification is typically used in legal or formal business contexts to refer to the obligation to compensate for loss or damage incurred by another party. The company agreed to provide indemnification for any claims brought against the contractor. The indemnification clause in the contract protects both parties from potential liabilities.
insurance	Insurance is a broad term used in contexts involving protection against financial loss or risks, typically provided through policies from insurance companies. She took out health insurance to cover medical expenses. Car insurance is mandatory in most countries.
coverage	Coverage is often used in insurance contexts to describe the extent to which a policy will protect against risks or damages. It can also refer to media coverage in journalism. The insurance policy offers comprehensive coverage for theft and damage. The news channel provided extensive coverage of the election.
security	Security is used in various contexts including physical protection, financial safety, or broader sense of feeling safe. It can refer to measures taken to protect against threats or investments that guarantee financial returns. The bank improved its security measures after the breach. Government bonds are considered very secure investments.

Examples of usage

The investor sought indemnification from the financial institution in case of any unexpected market downturns.
The contract included a clause for indemnification of any losses incurred during the project.

Interesting Facts

Etymology

The word comes from the Latin 'indemnitas', which means 'freedom from damage' or 'safety'.
It has roots in the Latin word 'damnum', meaning 'damage' or 'loss'.
The concept has been around since Roman law, reflecting societies' needs to protect individuals and businesses from risk.

Law

Indemnification is commonly used in contracts to ensure that one party compensates another for certain losses.
It is a key aspect of insurance policies, where the insurer promises to indemnify the insured against specific damages.
In legal cases, indemnification helps protect individuals from personal liability when they act on behalf of a company or organization.

Business

Many companies include indemnification clauses in their agreements to manage potential risks and liabilities.
Indemnification can affect negotiations, with some parties seeking more protection than others.
Startups often negotiate indemnification in investments to safeguard founders from claims as they grow.

Psychology

Understanding indemnification can help individuals feel more secure when making decisions involving risk.
The fear of financial loss is a significant driver in how people perceive contracts and legal protections.
Awareness of indemnification can influence behavior, making individuals more willing to take risks if they feel protected.

Pop Culture

Movies that revolve around legal battles often highlight indemnification, showcasing how characters protect themselves from liability.
Television shows about business deals frequently touch on indemnification clauses, illustrating their importance in negotiations.
Video games that involve risk management or strategy may incorporate concepts of indemnification to enhance player engagement.

Translations

Translations of the word "indemnification" in other languages:

🇵🇹 indenização

🇮🇳 क्षतिपूर्ति

🇩🇪 Entschädigung

🇮🇩 ganti rugi

🇺🇦 відшкодування

🇵🇱 odszkodowanie

🇯🇵 補償 (ほしょう)

🇫🇷 indemnisation

🇪🇸 indemnización

🇹🇷 tazminat

🇰🇷 배상 (賠償)

🇸🇦 تعويض

🇨🇿 odškodnění

🇸🇰 odškodnenie

🇨🇳 赔偿 (péicháng)

🇸🇮 odškodnina

🇮🇸 bætur

🇰🇿 өтемақы

🇬🇪 ანაზღაურება

🇦🇿 təzminat

🇲🇽 indemnización

Word Frequency Rank

With rank #17,991, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.

...
17988 conjure
17989 unmoved
17990 karma
17991 indemnification
17992 withstood
17993 commemorative
17994 projectiles
...