indemnification

[in-dem-nuh-fi-key-shuhn]

noun

1. the act of indemnifying; state of being indemnified.

2. something that serves to indemnify; compensation.

   Synonyms: indemnity, reparation, amends, payment

Other Word Forms

• indemnificatory adjective
• preindemnification noun

Word History and Origins

Origin of indemnification¹

First recorded in 1725–35; indemni(ty) + -fication

Related Words

• compensation 
• indemnity 
• restitution 

When To Use

What does indemnification mean?

Indemnification is the act of providing protection or security against potential damages or loss or compensating someone for damages or money spent.Indemnification is the act of indemnifying—providing indemnity. Indemnity is the protection. Insurance coverage indemnifies a person by insuring them for certain potential situations, such as damages to their property from natural disasters or accidents. Indemnification is commonly used in legal contracts to secure protection against being sued or held responsible for an accident.Indemnification can also refer to the state of being indemnified, or to the actual compensation paid.Example: Insurance companies are in the business of indemnification—you pay them a small amount so they can pay you a big amount if something bad happens.