Fig. 01 · Glossary
Indemnity Basket
Also known as Basket, Deductible Basket, Tipping Basket
Definition
An indemnity basket is a negotiated threshold for claims after closing. In many deals, buyers cannot recover losses from certain breaches until claims exceed the basket. Basket type, cap, survival period, exclusions, and escrow all affect the real risk allocation.
The basket is not legal boilerplate. It changes how diligence findings convert into seller risk after close.
Sellers should understand which issues are likely to be handled through price, escrow, indemnity, special indemnity, closing condition, or walk-away risk before they treat the LOI price as real.
Human Renaissance glossary · operator-grade definitions · Research methodology
