Glossary

What is Indemnification?

A contractual obligation by one party to compensate another for losses or damages incurred.

Full Definition

Indemnification is a contractual agreement in which one party agrees to compensate (hold harmless) another party for specified losses or damages. In insurance, indemnification operates at two levels: the insurance policy itself is an indemnity contract (the insurer indemnifies the insured for covered losses), and commercial contracts often include indemnification clauses between business parties. Hold harmless agreements, additional insured requirements, and certificates of insurance are all tools used to manage indemnification obligations between contracting parties.

Related Terms

Subrogation

Certificate of Insurance

Additional Insured

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Related Coverage & Services

General Liability Insurance

General liability insurance covers third-party bodily injury, property damage, and personal/advertising injury claims.

Subrogation

The right of an insurer to pursue a third party that caused a loss to the insured, recovering the amount paid on the claim.

Certificate of Insurance

A document issued by an insurer or broker that summarizes the key terms of an insurance policy, used to verify coverage for third parties.

Additional Insured

A party added to an insurance policy by endorsement that receives liability coverage under the named insured's policy.

Business Insurance

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