What is indemnity?

Indemnity is a legal term that refers to a contractual agreement between two parties where one party agrees to compensate the other party for any damages, losses, or expenses incurred. The purpose of indemnity is to transfer the risk of financial loss from one party to the other. For example, an insurance policy is a form of indemnity where the insurer agrees to pay for any losses or damages incurred by the policyholder. Indemnity clauses are commonly found in contracts, leases, and insurance policies, and they have become an essential tool in managing risk and protecting against financial losses in commercial transactions.

This mind map was published on 17 June 2023 and has been viewed 77 times.