Indemnity
A contractual obligation by one party (the indemnitor) to compensate the other party (the indemnitee) for specified losses, costs, or liabilities that the indemnitee incurs. In the EU AI Act vendor context, indemnities typically cover: regulatory penalties attributable to vendor-side non-compliance, and third-party claims attributable to the vendor's component. An indemnity between private parties does not change who the regulator pursues but creates a financial recovery path between the contracting parties.
Defined in 2 GAGE programs, which carry 3 distinct definitions of it. The wording above is taught in EU AI Act Implementation Expert.
How each discipline defines it
The same term does different work depending on who is using it. These are the definitions as each program teaches them, unedited.
A contractual obligation by one party (the indemnitor) to compensate the other party (the indemnitee) for specified losses, costs, or liabilities that the indemnitee incurs. In the EU AI Act vendor context, indemnities typically cover: regulatory penalties attributable to vendor-side non-compliance, and third-party claims attributable to the vendor's component. An indemnity between private parties does not change who the regulator pursues but creates a financial recovery path between the contracting parties.
A contractual promise by the vendor to cover specified losses (for example legal or regulatory harm caused by their system). Its value depends on what the vendor's own insurance actually covers, which for AI products is an increasingly narrow question. (see Topic 8.3)
A contractual promise by one party to cover another party's losses if a specified claim arises. AI-vendor IP indemnities promise to defend customers against certain third-party copyright claims, subject to carve-outs.
Where it is taught
The exact lessons this term appears in. The first 7 topics of every program are free with a free account.
- The vendor interrogation: questions that expose what the sales deck hides · Shipping AI and Surviving the Incident, AI Governance: Applied Mastery
- Who owns the output: IP, training-data provenance, and the liability chain when AI work goes wrong · Evidence Engineering, AI Governance: Applied Mastery
- Contractual Risk Allocation with AI Vendors · Regulatory Interplay and Liability, EU AI Act Implementation Expert
Terms it appears with
Not an alphabetical neighbourhood: these are the terms taught in the same lessons, ranked by how often they appear together.