Indemnification
Indemnification is a contractual obligation to compensate for loss or damage incurred by another party, often included in business agreements to cover potential liabilities or losses.
Benefits
Indemnification helps businesses avoid large, unexpected expenses. It provides a safety net, making financial planning easier and more predictable.
Frequently Asked Questions
What is the meaning of indemnification in insurance?
Indemnification in insurance means the insurer promises to cover losses or damages. This is to make the policyholder financially whole again.
How does an incubator program help startups?
Incubator programs help startups by providing resources and guidance. They make it easier for new companies to succeed.
What is an example of indemnity?
An example of indemnity is when an insurance company pays for car repairs after an accident. They cover the costs so the car owner doesn`t have to.
Key Takeaway
Indemnification offers financial protection in business deals. It helps companies feel safer when entering agreements, knowing they`re covered for losses.