What is “indemnification” - FAQ17

Generally speaking, an indemnification clause requires that one party take on the obligation to pay the other in the event of a loss or damage. Indemnity is the act of making someone “whole” (equal to what they have lost) or protecting them from identified losses. Depending on the subject matter of the contract, different types of indemnification clauses might be appropriate based on the types of loss or damage could possibly be incurred under the circumstances. Indemnifications often are related to insurance requirements or insurance coverage and thus should generally be reviewed by Risk Management and Insurance. See Collateral Review of the Contract of Section VI, the Step-By-Step Instructions: Contract Review and Approval with the Office of General Counsel, for more information on when and how to contact the Risk Management office.