A more thorough explanation:

Definition: To indemnify means to compensate another party for losses they have incurred or will incur as a result of a specific incident.

Example 1: A typical indemnification clause in a contract might look like this: "Party A will perform work at their own risk and indemnifies Party B against all loss, damages, expense, and liability resulting from injury to property." This means that Party A is agreeing that even if Party B is found liable for an action in court, Party B is not responsible for compensating Party A for any loss, damage, expense, or other liability relating to that action.

Example 2: Indemnification is often used in insurance transactions. For example, if someone buys car insurance, the insurance company agrees to indemnify the insured person for any losses they incur as a result of an accident or property damage. This means that if the insured person is responsible for an accident, the insurance company will pay for any damages or injuries that result from the accident.

Indemnification is a way to protect one party from financial losses that may result from a specific incident. In Example 1, Party A is agreeing to take on all the risk associated with performing a certain task, and is promising to compensate Party B for any losses that may result from that task. In Example 2, the insurance company is agreeing to compensate the insured person for any losses they may incur as a result of an accident or property damage. These examples illustrate how indemnification can be used to shift financial risk from one party to another.