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Indemnification
Indemnification is a legal promise by one party to cover the losses, damages, or legal costs that another party incurs because of a specific event or claim.
What it actually is
In a court case, indemnification typically arises from a contract clause where one person or company agrees to reimburse another for losses caused by the indemnifying party’s actions or by a third party. It can also be implied by law in certain situations, such as when a principal must cover an agent’s expenses incurred while carrying out authorized tasks. The term appears most often in lawsuits involving breach of contract, personal injury, or property damage where one party seeks to shift financial responsibility to another.
Why it matters in your case
If you are sued, an indemnification clause may require someone else—like your employer or a business partner—to pay your legal fees and any judgment against you. Conversely, if you signed an indemnification agreement, you could be forced to pay the other side’s costs, even if you believe you did nothing wrong.
The common misunderstanding
Many people confuse indemnification with insurance, but indemnification is a contractual or legal duty between specific parties, not a policy purchased from an insurer. Also, indemnification does not automatically mean the indemnifying party admits fault—it is often a risk-allocation tool separate from liability.
Get the actual rule
Definitions are orientation; rules are authority
This page explains the concept. When it matters to your case, read the rule that governs it in your court — we hold Texas, federal and Washington court rules word for word, and every state's official resources are on the state pages. If someone cites a case at you, check that it exists first.
Related
Terms that travel with this one
General explanation, not legal advice, and not specific to any state — procedures and deadlines vary by jurisdiction and court. If you can get a lawyer or free legal aid, do: every real option.