What Is Indemnity Insurance?
- Indemnity insurance is a type of insurance policy where the insurance company guarantees compensation for losses or damages sustained by a policyholder.
- Indemnity insurance is designed to protect professionals and business owners when found to be at fault for a specific event such as misjudgment.
- Certain professionals must carry indemnity insurance including those involved in financial and legal services, such as financial advisors, insurance agents, accountants, mortgage brokers, and attorneys.
- Medical malpractice, professional liability, and errors and omissions insurance are examples of indemnity insurance.
How Indemnity Insurance Works
Indemnity is a comprehensive form of insurance compensation for damages or loss. In a legal sense, it may also refer to an exemption from liability for damages. The insurer promises to make the insured party whole again for any covered loss in exchange for premiums the policyholder pays.
Indemnity insurance is a supplemental form of liability insurance specific to certain professionals or service providers. Insurance professionals provide counsel, expertise, or specialized services. Also referred to as professional liability insurance, indemnity insurance is nothing like general liability or other forms of commercial liability insurance that protect businesses against claims of bodily harm or property damage.
Indemnity Insurance vs. Life Insurance
Both indemnity and life insurance policies provide coverage for losses to an insured party in exchange for premiums up to a certain limit. Life insurance, though, provides a lump-sum payout to the named beneficiaries when an insured party dies. Unlike indemnity insurance, the payout, referred to as a death benefit, is the full amount of the policy—not for the amount of a claim itself.
What Is Professional Indemnity Insurance?
Professional indemnity insurance is a type of insurance that protects a business owner or professional if a client alleges that the business behaved negligently or failed to perform work adequately. This is different from general liability insurance, the type of insurance that protects a business in the event of an accidental injury on its premises.
What Is Hospital Indemnity Insurance?
Hospital indemnity insurance is a type of supplemental insurance that pays for hospitalization costs that are not covered by other insurance. This type of insurance is frequently taken out by businesses in case their employees are injured on the job.
What Is a Fixed Indemnity Insurance Plan?
Fixed indemnity insurance is a type of health insurance that pays out a fixed benefit for each healthcare event, regardless of the actual costs insured. A fixed indemnity plan might pay a certain amount of money for each hospital admission, or a certain amount for each day of hospitalization. These plans are exempt from the Affordable Care Act.
IMMEDIATE RELIEF
- Be at ease knowing your creditors are being taken care of.
ALL LIVING EXPENSES COVERED
- Be able to pay for living expenses without having to worry about debt.
REDUCED MONTHLY DEBT REPAYMENT
- Pay one monthly instalment, worked out according to what you can afford.
PROTECTION AGAINST LEGAL ACTION
- Worry less about being blacklisted. Your assets will be protected from repossession.
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