Indemnification


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Indemnification

Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgments resulting from lawsuits pertaining to their conduct.

Indemnification

The collection of money for damages. For example, indemnification occurs in insurance when the policyholder receives money to compensate for an insured event. Likewise, a company may receive indemnification from an employee, especially a major executive, if the company suffers damages in a lawsuit as a result of the employee's illegal or unethical actions.

indemnification

The process of shifting a loss from one party to another either because of an express agreement by the parties or because the law requires it under the circumstances.

Example: A purchaser of real estate discovers the property is subject to a lien that was placed against it prior to sale and pays the lien in order to avoid foreclosure; then the purchaser is entitled to indemnification, or reimbursement, from the prior owner who breached the warranties in the deed.

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CPA firms often seek indemnification from clients for any claims made against the firm that arise from management's misrepresentation or intentional withholding of information.
It's a good idea to talk to an experienced professional to make sure that when buying insurance you don't give up a substantial part of the claims control you fought so hard to attain through your carefully crafted intellectual property indemnification agreement.
While indemnification is a required piece of an effective program, it could leave an owner or manager chasing after the assets of their vendor.
In the credit union context, indemnification is only allowed for a civil proceeding, not criminal.
In reviewing this prior case law, the appellate court considering the appraiser's appeal noted that whether or not additional terms--such as an indemnification provision--should be considered part of a contract between an appraiser and the client depends heavily on the prevailing practices in the industry and on the prior course of dealing between the parties.
The property owners thus request that this Court adopt the following general rule: a party may be liable for common law indemnification upon a showing that the party (i.
In fact, based upon the terms of the indemnification agreement, the court found that it was unlikely that Georgia Pacific would ever seek reimbursement from Canal.
In such jurisdictions, the language quoted above may be inadequate to protect the contractor for that portion of the damage that results from its own negligence, as the provision could also be interpreted to limit indemnification to those damages caused by the subcontractor's negligence.
The fact that the hospital settled the case against it for $1 Million did not extend its right to seek indemnification from any of the doctors who were allegedly responsible for the negligence, which the hospital acknowledged by settling for $1 Million.
Accounting for an income tax indemnification arrangement depends upon whether the company is obligated to the taxing authority, the relationship between the parties and the type of transaction.
28, 2011 (TAP) - The indemnification, decided by the Government, for martyrs' families and injured of the People's Revolution, continued on Friday in several regions of the country.
Doctrines that define entitlements to indemnification carry high stakes for corporate directors and officers because, through a right to indemnity, a director or officer may shift litigation-related costs to his or her corporation.