English Reference
noun

indemnity

n.
US /ˌɪnˈdɛmnəti/ UK /ˌɪndˈɛmnɪti/ in·dem·ni·ty UK spelling indemnities

  1. 01 C1 Advanced FormalTechnical Law

    protection or security against damage or financial loss.

    security or protection against a loss or other financial burden. Uncountable in this abstract sense.

    Simple

    The contract includes an indemnity against any legal costs if the project fails.

    In context

    The clause provides a full indemnity for the directors against any personal liability arising from their good-faith decisions during the merger.

  2. 02 C1 Advanced FormalTechnical Law

    money paid to someone to cover the cost of a loss or injury.

    compensation for loss, damage, or injury sustained. Countable when referring to specific payments.

    Simple

    The government paid a large indemnity to the landowners after seizing their property.

    In context

    Following the breach of contract, the court ordered the defendant to pay an indemnity sufficient to cover the plaintiff's lost profits.

  3. 03 C2 Proficiency Technical Law

    the rule that insurance should only return you to your original financial state, not make you richer.

    the principle that an insurance policy should restore the insured to their approximate financial position prior to the loss.

    Simple

    Under the principle of indemnity, you cannot claim more than the house was worth.

    In context

    The insurer argued that the claim violated the principle of indemnity, as the payout would have resulted in a significant windfall for the policyholder.

    Usage

    Often appears in the phrase 'principle of indemnity'.


From late Middle English indempnite, from Middle French indemnité, from Late Latin indemnitās (“security from damage”), from Latin indemnis (“undamaged”), from in- (“not”) + damnum (“damage”).

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

This entry
Origin Latin indemnis
Level C1 · Advanced
Frequency Occasional
Updated