What part of a contract makes one party promise to cover losses or harm for the other party if certain bad things happen?

The part of a contract that makes one party promise to cover losses or harm for the other party if certain bad things happen is called an indemnification clause, also commonly referred to as an indemnity clause. This clause is a specific contractual provision where one party, known as the indemnitor, contractually agrees to compensate the other party, known as the indemnitee, for specific losses, damages, liabilities, or expenses that the indemnitee may incur under defined circumstances. The act of compensating for such losses or harm is known as indemnification. For instance, in a service agreement, a contractor (indemnitor) might agree to indemnify the client (indemnitee) against any third-party claims arising from the contractor's negligence during the project. If such a claim arises, the contractor would be responsible for the client's legal defense costs and any resulting judgments or settlements. The "certain bad things" are specific events or conditions clearly outlined in the clause that trigger the indemnitor's obligation, such as breaches of contract, acts of negligence, or claims brought by third parties. The "losses or harm" typically covered include financial outlays like legal fees, settlement amounts, court judgments, and other related expenses the indemnitee would otherwise bear. The primary purpose of an indemnification clause is to allocate risk between the contracting parties, ensuring that the indemnitee is financially protected from specified risks.