Indemnification

n. payment made for loss or damage, compensation, restitution; recompense, reimbursement

An Indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. The indemnifying party (A) may or may not be responsible for the loss suffered by the indemnified party (B). Methods of indemnity:- a. Payment of cash b. Repairs c. Replacement d. Reinstatement
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Noun
1. a sum of money paid in compensation for loss or injury
(synonym) damages, amends, indemnity, restitution, redress
(hypernym) compensation
(hyponym) relief
(derivation) compensate, recompense, repair, indemnify
2. an act of compensation for actual loss or damage or for trouble and annoyance
(hypernym) recompense, compensation
(derivation) compensate, recompense, repair, indemnify

(n.)
The act or process of indemnifying, preserving, or securing against loss, damage, or penalty; reimbursement of loss, damage, or penalty; the state of being indemnified.
  

(n.)
That which indemnifies.
  

In the pesticide program, legal requirement that EPA pay certain end-users, dealers, and distributors for the cost of stock on hand at the time a pesticide registration is suspended.