Usage and Context
Companies use indemnification to protect against financial losses. This is common in contracts, insurance, and partnerships. It helps businesses manage risk.
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.
Benefits
Indemnification helps businesses avoid large, unexpected expenses. It provides a safety net, making financial planning easier and more predictable.