indemnify
Definition
To indemnify someone means to promise that you will cover their losses or legal costs if something goes wrong because of you or your actions. Think of it as a financial safety net where one party agrees to protect another from specific kinds of harm or liability. Businesses encounter this word constantly in contracts, and it carries real money consequences.
Example
If you hire a contractor to work in your store and they accidentally injure a customer, an indemnification clause might require the contractor to pay for any lawsuit the customer brings against you. Without that protection, you could be stuck paying legal bills for something that was not your fault.
Watch Out
Indemnification clauses can run both ways in a contract, so always check whether you are the one promising to cover someone else's costs, because that obligation can be very expensive if something goes wrong.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.