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TeachMeFinance.com - explain Indemnify indemnify -- to compensate for an actual, sustained loss so as to restore to the condition prevailing before the loss. another definition... Indemnify -- 1. To compensate for actual loss sustained. 2. To give security for the reimbursement of a person in case of an anticipated loss falling upon him. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.