Indemnification is the act of making another "whole" by paying any loss another might suffer. This usually arises from a clause in a contract where a party agrees to pay for any losses which arise or have arisen. Example: two parties settle a dispute over a contract, and one of them may agree to pay any claims which may arise from the contract, holding the other harmless. A business owner may agree to turn a business over to another person for a reduced price if they pay the debts and other obligations of the business. A tenant may agree in a lease to indemnify the landlord for any damages incurred. In a broad sense, insurance policies are indemnity contracts.The person who indemnifies another is called the indemnitor or indemnifier and the person who receives indemnity from another is called indemnitee.