# Indemnification basket

The losses a buyer absorbs before any claim can be made at all.

It sets how much post-close risk you absorb yourself before the seller's promises pay out, and the mechanism matters as much as the number. A true deductible pays only the losses above the threshold, while a tipping basket pays from the first dollar once the threshold is crossed, and on the same figure those two are a materially different deal. Negotiate the type and the cap together, since a low basket under a low cap protects far less than either number suggests alone.

In numbers: On a $4M deal with a 0.75% basket, the buyer absorbs the first $30,000 of claims before any [indemnification](https://searchspheresource.com/glossary/indemnification) is owed.

Source: https://searchspheresource.com/glossary/indemnification-basket
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt