What does Indemnity means in a contract?

13. Indemnity. To the extent allowed by law without penalty of any kind, Owner agrees to indemnify and hold harmless Contractor in the event any claim, demand, suit, right or cause of action is brought, by any person, firm, sub-contractor, or corporation arising out of or related to this Contract. Owner further understands and agrees that, inasmuch as the repair, remodeling, and/or rehabilitation of an existing building or structure requires that certain assumptions be made regarding the conditions then existing in the building or structure, and because these assumptions may not be verifiable without expending additional sums of money or destroying otherwise adequate or serviceable portions of the building or structure, Owner shall, to the fullest extent provided by law without penalty of any kind, indemnify and hold harmless the Contractor from any claim, liability, or costs (including reasonable attorney’s fees and costs of defense) for any and all damages, economic loss, property damage, bodily injury, mental anguish, and/or any other loss arising or allegedly arising from the work and/or under this Contract, excepting those damages due solely to the fault of Contractor.