Indemnities refer to protections against potential future losses or damages. They represent financial or legal guarantees to compensate someone for harm, loss, or damage. This can include covering expenses, paying damages, or otherwise making someone whole after a covered event. Indemnities are commonly found in contracts, insurance policies, and legal settlements, serving to shift risk and provide assurance against unforeseen circumstances. They ensure that a party is restored to its previous financial position as if the event causing the loss had never occurred. The scope and specific terms of Indemnities vary widely depending on the context.
Indemnities meaning with examples
- The construction contract included robust Indemnities, shielding the contractor from liability for accidents on the job site, provided they were not directly negligent. This clause offered peace of mind, allowing the project to proceed with clear risk allocation. This protected the contractor against unforeseen expenses. The Indemnities were carefully crafted to specify covered events and the extent of the compensation.
- Following the data breach, the company offered Indemnities to affected customers, covering identity theft protection and financial reimbursement for any fraudulent charges. This act of good faith aimed to rebuild trust and mitigate the damage caused by the breach. Providing this offered some peace to the customers. These Indemnities were a critical part of the company's response.
- When purchasing the business, the buyer requested extensive Indemnities from the seller to protect themselves against pre-existing legal claims or undisclosed liabilities. These clauses ensured that the buyer would not be held responsible for problems that arose before the sale. This covered any potential financial losses for the buyer. This safeguard provided security.
- The insurance policy offered Indemnities against property damage caused by natural disasters, such as hurricanes and floods, up to a certain financial limit. These Indemnities enabled the policyholder to recover costs associated with repairs and temporary relocation, providing financial relief in a time of crisis. This assisted policy holders. These contracts offered peace of mind.
- In settling the lawsuit, the parties agreed on an indemnity clause, ensuring that the defendant would cover the plaintiff's legal fees and other associated costs. This provided the plaintiff with the means to pursue their legal rights without the added burden of extreme financial risk. This made the case manageable. Indemnities were a condition for the plaintiff.