Indemnity Meaning:
Indemnity has two main meanings:
1. Protection against financial loss: This is the most common meaning of indemnity. It refers to a legal or contractual obligation of one party (the indemnitor) to compensate another party (the indemnitee) for any losses or damages they suffer due to a specified event or action.
2. Exemption from liability: In some cases, indemnity can also refer to an exemption from legal responsibility for causing harm or damage. This is often seen in situations where someone is granted immunity from prosecution for their actions.
Sentence Examples:
Here are some examples of how “indemnity” is used in sentences:
Protection against financial loss:
- The insurance company provided indemnity to the homeowner for the fire damage.
- The contract included an indemnity clause that required the contractor to cover any costs associated with injuries sustained on the job site.
- The tenant was required to pay an indemnity deposit to cover potential damages to the rental property.
Exemption from liability:
- The witness was granted indemnity from the prosecution in exchange for their testimony.
- The government offered indemnity to any company willing to develop a cure for the disease.
Additional Notes:
- The term “indemnify” is often used synonymously with “hold harmless.”
- Indemnity agreements are common in many different contexts, such as contracts, leases, and insurance policies.
- It’s important to carefully review the terms of any indemnity agreement before signing it, as it can have significant legal implications.