Definition of Indemnity clause:
A provision in a contract under which one party (or both parties) commit to compensate the other (or each other) for any harm, liability, or loss arising out of the contract.
The formula to compute the amount of compensation is usually included in the contract. See also exclusion clause, exculpatory clause, exemption clause, and hold harmless clause.
Meaning of Indemnity clause & Indemnity clause Definition