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What Is Indemnity (Indemnification)?
Indemnity, or indemnification, is a contractual promise by one party to cover another party’s losses. In professional services contracts the key question is scope: a negligence-based indemnity, covering losses you actually caused, is usually insurable, while a broad-form indemnity that assumes the other side’s fault often is not.
A professional liability (E&O) policy covers the liability you would have had without the contract. Agree to indemnify for “any and all claims,” the client’s own negligence, or a duty to defend, and the extra exposure falls outside your coverage. See our engineering contract review guide.
Questions about Indemnity (Indemnification)?
Our Ontario brokers can explain how it applies to your policy.
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Reviewed by Roughley Insurance Brokers Ltd. — licensed Ontario insurance brokers since 1945. Last updated June 21, 2026. ← Back to the glossary