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Indemnity
Indemnity is a legal promise that one person will pay for another person's losses or damages if something goes wrong.
What it actually is
Indemnity is a right or obligation, often arising from a contract or by law, that requires one party to compensate another for a specific loss, liability, or expense. In a court case, it typically appears when a defendant argues that a third party agreed to cover any damages the defendant might have to pay. It can also be asserted as a claim by a party who has paid a loss and seeks reimbursement from the party who was legally responsible.
Why it matters in your case
If you are sued, an indemnity claim can protect you from having to pay out of pocket by shifting the financial burden to someone else who agreed to indemnify you. Conversely, if you are the one promising indemnity, you could be forced to pay the other party's legal costs and damages even if you did nothing wrong.
The common misunderstanding
Many people confuse indemnity with insurance, but indemnity is a contractual promise between specific parties, while insurance is a policy purchased from an insurer. Another common mistake is thinking indemnity automatically covers all losses—it only covers what the specific agreement or law says it covers.
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.