What context can I use each word in?
Learn when and how to use these words with these examples!
indemnification
Example
The contract included an indemnification clause to protect against any potential lawsuits. [indemnification: noun]
Example
The insurance policy provides indemnification for any damages caused by the insured party. [indemnification: noun]
compensation
Example
The company offered him a generous compensation package for his work. [compensation: noun]
Example
The victim received compensation for the injuries sustained in the accident. [compensation: noun]
Good things to know
Which word is more common?
Compensation is more commonly used than indemnification in everyday language and covers a wider range of contexts, including employment, insurance, and personal injury claims.
What’s the difference in the tone of formality between indemnification and compensation?
Indemnification is typically associated with formal and legal language, while compensation can be used in both formal and informal contexts.
