Indemnification is a contractual commitment by one party (the indemnitor) to compensate the other (the indemnitee) for losses, damages, or expenses arising from specific events - typically third-party claims, IP infringement, or defined breaches.
Scope and caps
Indemnification clauses typically specify the covered events, the scope of losses, exclusions, and financial caps. Well-drafted clauses balance protection with commercial reasonableness.
Portfolio-level risk view
Indemnification exposure aggregates across a portfolio. Legal teams that structure indemnification terms as data can produce a portfolio-level exposure view - which most cannot today.
