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indemnity (noun) protection against loss or damage (by paying money for the loss or damage caused), compensation paid for loss or damage.

When a person indemnifies you they offer to pay money as compensation for the loss or damage that you undergo because of them. A company indemnifies its customers if they suffer any loss or damage by using the company’s products or services, by paying them money as compensation.

  • The government has indemnified all those who were displaced by the construction of the dam in the area. They have all been suitably compensated for the loss and hardship they had to undergo because of their displacement. The company had to indemnify all those severely affected by the use of the company’s drug. It had to cough up huge sums by way of the compensation.
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Last Modified : 11-May 2009
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