Indemnity

Indemnity is a legal concept that is used to protect one party from any losses or damages that may occur in contract or tort law. It is an agreement between two parties in which one party agrees to cover any losses or damages incurred by the other party.

For example, an employer may include a clause in an employee contract that requires the employee to reimburse the company for any losses or damages that the company may incur due to the employee’s actions.