indemnity
C1Formal, Technical
Definition
Meaning
Compensation or protection against loss, damage, or legal liability.
1. A sum of money paid as compensation, especially by a country defeated in war (war indemnity). 2. An exemption from penalties or liabilities, often granted by an authority. 3. A contractual agreement (insurance, guarantee) to provide financial security against specific risks.
Linguistics
Semantic Notes
Indemnity is a transactional or legal concept implying a restoration to a previous state of financial or legal security, not simply a generic 'compensation'. It implies a duty on one party to make another whole.
Dialectal Variation
British vs American Usage
Differences
No major semantic differences. In UK law, 'indemnity' is a specific type of contract of insurance. In the US, the term is heavily used in insurance policies, warranties, and corporate law.
Connotations
Both regions share formal, legal, and financial connotations. Slightly more common in UK property law (e.g., 'indemnity policy' for missing title deeds).
Frequency
Equally frequent in professional legal, insurance, and financial contexts in both regions. Rare in everyday conversation.
Vocabulary
Collocations
Grammar
Valency Patterns
indemnity against [risk/damage]indemnity for [losses/costs]indemnity from [liability/harm]to provide/grant/offer indemnity to [someone]to seek/obtain/receive indemnity from [someone]Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “hold harmless”
- “make whole”
- “save harmless”
Usage
Context Usage
Business
Part of contracts to protect parties from financial losses due to the other's actions (e.g., 'The supplier provided an indemnity against product liability claims').
Academic
Used in legal, historical (e.g., war reparations), and economic studies analysing risk transfer and compensation mechanisms.
Everyday
Virtually unused. Might be encountered in complex insurance documents or news about corporate lawsuits.
Technical
A precise legal and insurance term defining the obligation to compensate for loss or damage, distinct from mere 'damages'.
Examples
By Part of Speech
verb
British English
- The contract will indemnify the directors against any personal liability.
- We required the contractor to indemnify us for any third-party claims.
American English
- The agreement indemnifies the company from all future lawsuits.
- The manufacturer agreed to indemnify the retailer for recalled products.
adverb
British English
- The clause operates indemnifically, covering all consequential losses. (Rare/Highly technical)
- N/A (Standard adverb form is not in common use.)
American English
- The parties agreed to act indemnitorily. (Rare/Highly technical)
- N/A (Standard adverb form is not in common use.)
adjective
British English
- They purchased an indemnity policy for the property's restrictive covenant.
- The indemnity principle is central to the law of guarantees.
American English
- The indemnity clause was the most negotiated part of the deal.
- He reviewed the indemnity agreement with his lawyer.
Examples
By CEFR Level
- (Not applicable - word is above A2 level.)
- The travel insurance offers indemnity if your luggage is lost.
- After the accident, he received an indemnity from the driver's insurance.
- The software licence includes an indemnity against copyright infringement claims.
- The treaty imposed a large war indemnity on the defeated nation.
- The directors demanded a full indemnity from the shareholders before proceeding with the risky acquisition.
- A letter of indemnity was issued to the bank to facilitate the release of the shipping documents without the original bill of lading.
Learning
Memory Aids
Mnemonic
Think: 'INDEMNity' sounds like 'IN DEMaNd' when you need financial protection or compensation.
Conceptual Metaphor
FINANCIAL SAFETY IS A SHIELD (Indemnity acts as a shield against financial harm).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Не путать с 'независимостью' (independence).
- Ближе по смыслу к 'возмещение убытков', 'страхование ответственности', 'гарантия компенсации', а не просто 'компенсация'.
- В русском 'индемнитет' — узкий юридический термин, в английском 'indemnity' — шире.
Common Mistakes
- Using 'indemnity' as a synonym for casual 'refund'.
- Confusing with 'immunity' (legal protection from prosecution).
- Incorrect preposition: 'indemnity of' instead of 'indemnity against/for'.
- Spelling: 'indemnety' or 'indemnaty'.
Practice
Quiz
In which context is the term 'indemnity' LEAST likely to be used correctly?
FAQ
Frequently Asked Questions
Indemnity is a specific type of compensation aimed at restoring the exact financial position before a loss. Compensation is broader and can cover non-financial losses (e.g., for hurt feelings). Indemnity implies a legal or contractual duty.
Not exactly. Indemnity is the core principle of insurance (to make the insured whole), but 'insurance' is the system or contract. An 'indemnity policy' is a type of insurance contract based on this principle.
The verb form is 'indemnify'. It means 'to protect or secure someone against legal liability or loss', or 'to compensate for harm or loss'.
It is a legal document, common in trade and finance, where one party guarantees to compensate another for a specified loss or damage if a third party fails to fulfill an obligation (e.g., releasing cargo without original documents).
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