What is the difference between "indemnity" and "indemnify"?


Editorial team Published on

Indemnity is a noun that means security or compensation against damage or loss, while indemnify is a verb that means the actual act of compensating someone for that loss.

Key Differences

  • Indemnity (Noun)
    • Refers to the protection, security, or legal obligation itself.
    • Represents the right to claim reimbursement or the duty to make another party whole.
    • Example: "The contract includes an indemnity clause for third-party claims."
  • Indemnify (Verb)
    • Refers to the action of paying or compensating a party for their losses.
    • Describes what the responsible party (the indemnitor) promises to do.
    • Example: "Company A agreed to indemnify Company B if a lawsuit occurred."

Related Terms

  • Indemnification: Another noun form, often used interchangeably with indemnity, describing the compensation or the process of being protected from liability.
  • Hold Harmless: A related contractual term that protects a party from legal liability, which is often paired right alongside the duty to indemnify.