Non-indemnifiable

The term 'non-indemnifiable' describes a situation, event, or loss that is not covered by an agreement to protect someone against a loss or damage. It signifies an exposure to risk where one party cannot be held financially or legally responsible for another's expenses or liabilities. This typically applies to instances where contractual exclusions exist, specific types of damages are not insured, or the law prevents compensation. The core idea is the absence of an obligation to 'make whole' the affected party, leaving them bearing the brunt of the consequences.

Non-indemnifiable meaning with examples

• Due to the clause in the contract excluding acts of God, the hurricane damage to the property was deemed non-indemnifiable, leaving the tenant responsible for all repairs and losses. The insurance policy explicitly excluded natural disasters. The company thus declined to cover the damages, as its obligations did not extend that far.
• Despite providing security, the company claimed the theft was a result of a staff's intentional misconduct. That act classified the burglary as non-indemnifiable, shifting the entire burden of loss onto the client. The firm's limited liability terms protected it against those scenarios.
• During the audit, it was determined that the penalties from the regulatory body, due to the lack of due diligence, were deemed non-indemnifiable by the company's insurance policy. Therefore the company bore the financial repercussions of this action and were liable for fines and settlements.
• The terms of the partnership agreement specified that losses resulting from a partner's gross negligence were non-indemnifiable. This ensured that each partner took personal responsibility for their actions, which was fair, and thus could not seek reimbursement from others. The partnership's financial stability remained the focus.
• Because the policy specifically omitted damages caused by war, the destruction caused by the conflict was judged to be non-indemnifiable. The homeowners were left with major repair bills after the bombing in their neighbourhood. The insurance company was exempt from covering the losses and did not step in.