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Indemnification

A contractual promise by one party to cover specified losses of another.

Indemnification is a contractual obligation under which one party (the indemnitor) agrees to compensate the other (the indemnitee) for specified losses, often including third-party claims and the defense of them. Heavily negotiated terms include the scope of covered claims, whether defense is included, caps, and carve-outs.

An uncapped or one-sided indemnity is a frequent redlining target in contract review.

Related terms

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