indemnity🔊

Security from damage, loss, or penalty.

(law) An obligation or duty upon an individual to incur the losses of another.

Repayment; compensation for loss or injury.

(law) The right of an injured party to shift the loss onto the party responsible for the loss.

(insurance) A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.