What does it mean to indemnify and hold harmless?

For example, the term “indemnify” is used when a business hopes to protect itself against claims from a customer’s error, while a hold harmless clause prevents a business from taking any responsibility for a customer’s mistake. Experts recommend that both terms be included for maximum protection.

Is hold harmless the same as indemnify?

In practice, a hold harmless and an indemnity are functionally equivalent in that both require a party to assume responsibility for losses incurred by another party in connection with certain acts and circumstances. Some argue that while an indemnity shifts losses, a hold harmless shifts both losses and liability.

What does hold harmless mean in contract?

A hold harmless agreement protects business owners from being sued when someone suffers damage, bodily injury, or financial loss on business property or while a service is being provided.

How is a duty to defend different from indemnify and hold harmless?

The differences between the duty to indemnify and to defend, while nuanced, are critically important. The obligation to indemnify arises once a judgment has been entered, whereas the obligation to defend is triggered as soon as a claim is filed against the indemnitee.

What is the opposite of indemnify?

Antonyms. borrow deny withdraw take starve breastfeed. give recompense compensate pay.

What happens if I indemnify someone?

In an indemnity agreement, one party will agree to offer financial compensation for any potential losses or damages caused by another party, and to take on legal liability for whatever damages were incurred.

What is indemnify in law?

Indemnification is a legal agreement by one party to hold another party blameless – not liable – for potential losses or damages. It is similar to a liability waiver but is usually more specific, applicable only to particular items, circumstances, or situations, or in regard to a particular contract.

What is a synonym for indemnify?

Some common synonyms of indemnify are compensate, pay, recompense, reimburse, remunerate, repay, and satisfy. While all these words mean “to give money or its equivalent in return for something,” indemnify implies making good a loss suffered through accident, disaster, warfare.

What is the purpose of indemnity?

“To indemnify” means to compensate someone for his/her harm or loss. In most contracts, an indemnification clause serves to compensate a party for harm or loss arising in connection with the other party’s actions or failure to act. The intent is to shift liability away from one party, and on to the indemnifying party.