Indemnification: meaning, definitions and examples

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 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 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 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.

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 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 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 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.