Indemnification Legal Meaning and Definition

Here is a simplified definition of the legal term Indemnification.

Indemnification (noun)

Indemnification is a legal term referring to the compensation given to an individual or a party for a loss, damage, or injury that has previously been suffered. Essentially, it is money paid to cover the expenses related to an issue or wrongdoing, acting as a protection or security against future losses. It's often included in contracts in order to shift potential risk from one party to another.