1. A duty to make good any loss, damage, or liability incurred by another. [Cases: Indemnity 20, 25, 50–61.]
2. The right of an injured party to claim reimbursement for its loss, damage, or liability from a person who has such a duty.
3. Reimbursement or compensation for loss, damage, or liability in tort; esp., the right of a party who is secondarily liable to recover from the party who is primarily liable for reimbursement of expenditures paid to a third party for injuries resulting from a violation of a common-law duty. Cf. CONTRIBUTION. — indemnitory, adj.
double indemnity. The payment of twice the basic benefit in the event of a specified loss, esp. as in an insurance contract requiring the insurer to pay twice the policy’s face amount in the case of accidental death. [Cases: Insurance 2599. C.J.S. Insurance §§ 1094, 1096, 1170–1171.]
indemnity against liability. A right to indemnity that arises on the indemnitor’s default, regardless of whether the indemnitee has suffered a loss. [Cases: Indemnity 31(4), 42.]
“Indemnity against Liability — Where the indemnity is against liability, the cause of action is complete and the indemnitee may recover on the contract as soon as his liability has become fixed and established, even though he has sustained no actual loss or damage at the time he seeks to recover. Thus, under such a contract, a cause of action accrues to the indemnitee on the recovery of a judgment against him, and he may recover from the indemnitor without proof of payment of the judgment.” 42 C.J.S. Indemnity § 22 (1991).
