Indemnification often relates to insurance where it describes being compensated for a loss or damage.

Insurance Focus

Indemnification can also apply in legal contexts to protect a party from liability or financial loss.

Legal Protection

The term suggests a sense of restoring or recovering from a loss, not just a simple payment.

This type of indemnification is about financial protection because of one's role or relationship.

It's the idea of guarding against costs that could arise from legal actions or lawsuits.

Indemnification might not cover all costs, so it's important to understand its limits in an agreement.