Indemnity Fund
/ɪnˈdɛm.nɪ.ti fʌnd/
Definitions
- (n.) A legally established fund to compensate individuals for losses or damages where direct liability is limited or uncertain.
The indemnity fund was created to provide payments to employees injured on the job without suing their employer.
- (n.) A financial reserve maintained to cover indemnity claims arising under contracts or insurance policies.
The company allocated money to the indemnity fund to cover potential claims from policyholders.
Forms
- indemnity fund
- indemnity funds
Related terms
See also
Commentary
Often established by statute or contract, an indemnity fund serves to streamline compensation and reduce litigation; clarity on its funding source and governing rules is essential in drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.