# indemnity

/ˌɪnˈdɛmnəti/ (US) · /ˌɪndˈɛmnɪti/ (UK)

Source: https://englishreference.com/word/indemnity
Updated: 2026-08-27

## Senses

### 1. protection against loss

noun · CEFR C1 · Formal · Technical

protection or security against damage or financial loss.

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

- The contract includes an indemnity against any legal costs if the project fails.
- The clause provides a full indemnity for the directors against any personal liability arising from their good-faith decisions during the merger.

### 2. compensation for damage

noun · CEFR C1 · Formal · Technical

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

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

- The government paid a large indemnity to the landowners after seizing their property.
- Following the breach of contract, the court ordered the defendant to pay an indemnity sufficient to cover the plaintiff's lost profits.

### 3. insurance principle

noun · CEFR C2 · Technical

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

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

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

## Examples

- The company provides full indemnity for any mistakes made by its employees.
- Before signing the contract, the client requested a written indemnity to cover any potential legal costs if the project failed.
- The insurance policy provides comprehensive indemnity against third-party claims, ensuring that the firm remains solvent even in the event of a catastrophic product failure.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.