[in-dem-ni-tee] 
| 1. | protection or security against damage or loss. |
| 2. | compensation for damage or loss sustained. |
| 3. | something paid by way of such compensation. |
| 4. | protection, as by insurance, from liabilities or penalties incurred by one's actions. |
| 5. | legal exemption from penalties attaching to unconstitutional or illegal actions, granted to public officers and other persons. |
| in·dem·ni·ty (ĭn-děm'nĭ-tē) n. pl. in·dem·ni·ties
[Middle English indempnite, from Anglo-Norman, from Late Latin indemnitās, from Latin indemnis, uninjured; see indemnify.] |
Indemnity
A contractual agreement made between different parties to compensate for any damages or losses.
Investopedia Commentary
Most commonly used in the wording of insurance policies, the company will indemnify the policy holder for any losses that are insured for.
See also: Hazard Insurance, Life Insurance, Portfolio Insurance
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