Overview of Indemnity Insurance
Indemnity insurance is a type of insurance policy designed to protect businesses and professionals from potential financial losses due to claims made against them by clients or third parties. It covers legal costs to defend claims and payouts to clients making claims. Some industries require members to have it, making it essential for practicing legally.
Importance of Indemnity Insurance
- Supplemental liability insurance tailored for professionals
- Retroactive coverage for past errors
- Customized to address specific risks in various industries
Indemnity Insurance Coverage
- Protects against financial losses due to claims
- Covers legal expenses and settlements
- Ensures financial stability for continued operations
If you buy a house and the seller cannot provide a certain certificate, you could be covered by indemnity insurance if a claim arises. These policies are crucial for professionals in high-risk fields where errors can cause harm or loss for clients. Coverage can extend to claims resulting from cyber events, offering substantial financial protection.