Indemnification
is a contractual obligation
by one party to pay or compensate for the
loss or damage
example one of your careless consultants
leaves certain
equipment on the ground causing a visitor to trip over it and injures himself/herself.
The visitor sues you because the accident occurred on your office premises.
What will you do? If there was an indemnification clause in the contract
between you and your consultant, you can seek the consultant to reimburse the
amount that you had to pay to the injured. This clearly explains how you can
shift the responsibility for payment to the concerned party who caused the
injury.
or liability incurred by another party to the contract or by
some third person. For
Indemnity is not necessarily
limited to personal injuries or property damage. It can also apply to
contractual obligations.