Indemnity is a legal concept by which one person indemnifies another person for some specified damage, harm or loss. To indemnify means to hold another harmless, or to assume responsiblity for the obligation of another. Prescott, AZ lawyers
Indemnity creates a legally enforceable obligation by the person granting the indemnity, the indemnitor, to compensate the person receiving the indemnity, the indemnitee, upon the occurrence of some specified damage, harm or loss.
Many insurance contracts provide indemnity. The insurance company (indemnitor) agreed to pay for damage, harm or loss incurred by its insured (indemnitee).
Some states require that the indemnity agreement be in writing, a concept that evolved from the 1677 British “Statute of Frauds.” Common sense suggests that all indemnity agreements be placed in writing.
The term “indemnity” stems from the Latin root “indemnis,” which means “unhurt,” “undamaged,” or “without loss.”