Indemnify

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Indemnify

Used in insurance policy agreements as to compensation for damage or loss. Hold harmless

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.
References in periodicals archive ?
If the seller indemnifies the buyer for the related tax exposure, the buyer would record a $20 indemnification asset even though no liability is presented.
Although in the last few years there has been a proliferation of D&O policies that solely provide Side A coverage, most D&O policies contain a "Side B" coverage that generally applies whenever there is a covered claim for which the corporation or organization lawfully indemnifies, or is required or permitted to indemnify, the director or officer for that claim.
Accordingly, the SBA indemnifies approved sureties up to an established percentage of loss on those guaranteed bonds they provide to these small businesses.