an agreement to protect a party against losses The Government provided the company with an indemnity for uninsured losses relating to specific claims.
undertaking by the seller to reimburse the buyer in respect of particular types of liabilities, should they arise, entitling the buyer to a guaranteed remedy on a pound-for-pound basis if the event giving rise to the indemnity takes place The buyer made the claim against the seller under the indemnity.
- There is an important distinction between indemnity and indemnification. Indemnity is the agreement to protect against losses, whereas indemnification is the act of compensation for the loss or the sum of money actually paid: The indemnification was granted as a humanitarian gesture.
- The solicitor was advised to take out professional indemnity insurance to protect herself against liability to third parties.
- The buyer was protected by indemnities provided by the seller.
- Extensive tax indemnities were given by the seller.
- The indemnity policy was not valid in this case.
- Unlike a claim for breach of warranty, there is no need for the buyer to establish that he has suffered loss.