Source : Webster's Revised Unabridged Dictionary (1913)

Indemnify \In*dem"ni*fy\, v. t. [imp. & p. p. {Indemnified}; p.
   pr. & vb. n. {Indemnifying}.] [L. indemnis unhurt (in- not +
   damnum hurt, damage) + -fy. Cf. {Damn}, {Damnify}.]
   1. To save harmless; to secure against loss or damage; to
      insure.

            The states must at last engage to the merchants here
            that they will indemnify them from all that shall
            fall out.                             --Sir W.
                                                  Temple.

   2. To make restitution or compensation for, as for that which
      is lost; to make whole; to reimburse; to compensate.
      --Beattie.

Source : WordNet®

indemnify
     v 1: secure against future loss, damage, or liability; give
          security for; "This plan indemnifies workers against
          wages lost through illness"
     2: make amends for; pay compensation for; "One can never fully
        repair the suffering and losses of the Jews in the Third
        Reich"; "She was compensated for the loss of her arm in
        the accident" [syn: {compensate}, {recompense}, {repair}]
     [also: {indemnified}]