Which term describes protection against monetary or civil damages?

Which term describes protection against monetary or civil damages?

• A. Immunity from prosecution
• B. Indemnification
• C. Adverse judgement
• D. Insurance coverage

Answer: (B)

Indemnification is the term for protection against monetary or civil damages because it involves compensating someone for losses or liabilities. It’s a shift of financial risk from the harmed party to the party agreeing to indemnify, typically through a contract or statute, so the indemnitor promises to cover costs, settlements, or judgments that arise from specified actions. Immunity from prosecution isn’t about damages at all; it means not subject to criminal charges. An adverse judgment is the decision against you, which can lead to damages but is not the mechanism providing protection. Insurance coverage is a way to transfer risk to an insurer, but the specific phrase describing the protection against damages in a contractual or legal sense is indemnification.

Indemnification is the term for protection against monetary or civil damages because it involves compensating someone for losses or liabilities. It’s a shift of financial risk from the harmed party to the party agreeing to indemnify, typically through a contract or statute, so the indemnitor promises to cover costs, settlements, or judgments that arise from specified actions.

Immunity from prosecution isn’t about damages at all; it means not subject to criminal charges. An adverse judgment is the decision against you, which can lead to damages but is not the mechanism providing protection. Insurance coverage is a way to transfer risk to an insurer, but the specific phrase describing the protection against damages in a contractual or legal sense is indemnification.