What does Indemnity Mean?

Indemnity is a legal term which refers to one party’s responsibility or obligation to protect or hold harmless another person from legal harm. For example, if one person has agreed to indemnify another in a contract, he/she has agreed to defend and/or pay for the legal defense of the other if that person is ever sued for any issue specifically identified in that contract. That person then stands in the shoes of the one being sued and defends against any such claims and ultimately suffers the consequences of any such claim.