Glossary → Contracts
Contracts

Indemnification

A promise to cover someone else’s losses or legal costs.

An indemnification clause shifts financial risk: one party agrees to pay for certain losses, damages, or legal claims the other party suffers. The key questions are who indemnifies whom, what’s covered, and whether there’s a dollar cap. A one-sided or uncapped indemnity can expose you to large, open-ended liability.

In practice

“Tenant shall indemnify Landlord against all claims arising from Tenant’s use of the premises.” — this makes the tenant cover the landlord’s legal costs, even for some things outside the tenant’s control unless narrowed.

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