Be Wise › Contract glossary › Indemnity
Indemnity
An indemnity is a promise by one party to reimburse the other for specified losses, usually arising from third-party claims. It can give broader and more certain recovery than a claim for damages.
In more detail
Indemnities should be carefully limited — to particular risks, and often to a cap — because they can expose the indemnifying party to large liabilities.
Put it into a contract
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England & Wales appScotland appReviewed 2026-09-24. General legal information, not legal advice.