Indemnified

To be indemnified means to be protected against or compensated for loss, damage, or injury. It involves a promise or assurance that one will be held harmless from any liability, expense, or legal action arising from a specific situation. This often involves financial reimbursement, but can extend to other forms of redress. The act of indemnifying essentially shifts the risk of potential loss from one party to another, providing a safety net in case of unforeseen circumstances. It ensures that the protected party doesn't bear the brunt of negative consequences.

Indemnified meaning with examples

• After the car accident, Sarah was indemnified by her insurance company for the cost of repairs and medical bills. Her policy stated that she was covered in such situations, effectively removing the financial burden from her. The insurance company handled all claims and legal aspects, preventing any further stress or expense for her.
• The construction company was indemnified by the project's owner against any third-party lawsuits arising from on-site accidents. This clause in their contract protected them from potential financial ruin. The owner assumed responsibility for these risks, ensuring the construction firm could focus on the job without undue worry.
• As part of the merger agreement, the acquiring company indemnified the shareholders of the target company against any undisclosed liabilities. This protection reassured investors and smoothed the acquisition process, guaranteeing their investments would not suffer from the unknown circumstances
• Following the product recall, the manufacturer indemnified retailers for the loss of inventory and any associated legal fees. By doing this, they maintained good relations with the retailers and helped offset the negative repercussions associated with the product issue, avoiding damage control to their company image.