Indemnification

  
indemnify
(dictionary) 		verb 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 [syn: {compensate}, {recompense}]
There are several contexts in which to discuss "indemnification;" in this page we are addressing the indemnification status related to compliance with safety and waste disposal requirements.
Indemnified status is conferred upon Schools or Departments (not upon individuals or research groups) by the Vice President of Physical Facilities (co-chair of the Hazards Oversight Committee) as outlined in Executive Memorandum C-36
Indemnification is granted (and renewed on a roughly annual basis) after a number of conditions have been met by the applicant Department(s), including (but not necessarily limited to)
items found to be of concern  -- in self audits or REM building inspections -- have been corrected and reported as corrected
training (and training records) are up to date and well organized -- CHP, HazCom, forklift, PPE, laser, Rad, BBP..... all appropriate training required by regulations and/or University policy.
a final walk-through "spot-check" style inspection of the areas by REM section leaders
A written recommendation is then sent from REM to the Vice President, recommending indemnification or reindemnification, and the Vice President issues a letter of indemnification to the Department (or School, if an entire School has undertaken the process, as has happened thus far with of the School of Veterinary Medicine).
If a Department is indemnified, this guarantees that the University will pay any fines received from EPA, OSHA, NRC, DOT.... for violations of regulations by that department.
If a Department is not indemnified, and then receives a fine from OSHA, EPA, etc.... (these fines, especially the EPA fines, have been as high as $1.5 million for some schools but are more often in the $100,000 - $600,000 range) are not guaranteed to be paid by the University.  

   
And it is not only about lab safety, by the way.  Not at all.  (Lab-intensive departments tend to side-tracked into thinking that it's only about labs.)

From the Faculty and Staff Handbook