What context can I use each word in?
Learn when and how to use these words with these examples!
indemnization
Example
The company offered indemnization to the employees affected by the layoff. [indemnization: noun]
Example
The insurance policy provides indemnization for any damages caused by natural disasters. [indemnization: noun]
compensation
Example
The company offered compensation to the customers affected by the product recall. [compensation: noun]
Example
The manager promised to compensate the employee for the extra hours worked. [compensate: verb]
Good things to know
Which word is more common?
Compensation is more commonly used than indemnization in everyday language. Compensation is versatile and covers a wide range of contexts, while indemnization is less common and often used in legal or financial contexts.
What’s the difference in the tone of formality between indemnization and compensation?
Indemnization is typically associated with a more formal and legal tone, while compensation can be employed in various formality levels, allowing it to be used in both formal and informal contexts.
