indemnification

Indemnification is a legal concept where one party agrees to compensate another for losses or damages that may occur due to specific events. Think of it as a safety net: if you face a financial burden because of someone else's actions, indemnification ensures they will cover those costs. This often appears in contracts, where one party promises to protect the other from legal claims, damages, or liabilities. Essentially, it’s about accountability and protection, ensuring that if something goes wrong, the responsible party will make it right financially.