Indemnify

Indemnify

To indemnify is to make whole, such as by reimbursing or compensating, a party for loss suffered. It does not remove legal responsibility; rather it compensates for losses that arise from that responsibility.  For example, a professional is sued by their client for an error made in a report that cause the client a financial loss. The professional is legally responsible for that loss. The role of the professional’s professional indemnity insurance is to indemnify the professional by paying the client’s claim within the insurance policy limit. Indemnity addresses who pays for the loss, not whether liability exists.
See also: indemnifiable loss, indemification, indemnification agreement.