What is Indemnity Insurance?
Indemnity insurance is a type of coverage designed to protect individuals or entities against financial loss resulting from claims made by third parties.
Key Features of Indemnity Insurance
- Coverage: It typically includes liability for negligence, errors, or omissions in professional services.
- Policy Limits: Each policy has specific limits on the amount that can be claimed, which can vary based on the insurer and the insured's requirements.
- Deductibles: Many indemnity insurance policies may have deductibles, which are the amounts insured must pay before the insurance kicks in.
Common Types of Indemnity Insurance
Indemnity insurance can be found in various sectors, including:
- Professional Indemnity Insurance: Protects professionals like doctors or lawyers against claims of negligence.
- Public Liability Insurance: Covers claims made by the public for injuries or damages caused by business activities.
- Contractor Indemnity Insurance: Provides coverage for contractors in case of contract breaches leading to financial damages.
Why Indemnity Insurance Matters
Having indemnity insurance is crucial for protecting personal and business assets from the financial impact of legal claims. It provides peace of mind, knowing that one is covered in case of unforeseen circumstances arising from their professional or business activities.