To indemnify another party is to
compensate that party for loss or damage that has already occurred,
or to guarantee through a contractual agreement to repay another
party for loss or damage that occurs in the future.
One common example of an
indemnification occurs when an insurance company, as part of an
individual insurance policy, agrees to indemnify the insured person
for losses that person incurred as the result of accident or property
Another example is when a subcontractor
agrees to indemnify a general contractor for any losses that occur as
a result of the subcontractor’s work – whether they be as a
result of a suit filed against the general contractor for failure to
adhere to contractual terms, or because of personal injury suffered
at the job site by a worker or some other individual.
Inc. et al v. United States, 516 U.S. 417 (1996).