What is Indemnity insurance?
Indemnity insurance is designed to compensate the beneficiaries for their actual financial losses that are incurred, in case their clients sue them for their losses incurred due to negligence or fault at the end of the beneficiary. To get compensated under indemnity insurance coverage the insured person or organization has to prove his losses before the recovery can begin.
The recovery under indemnity insurance is usually limited to the amount of the losses which are easily provable, even if the actual amount of the policy is much higher. In this manner the indemnity insurance is very different from the other insurances e.g. life insurance, where the amount of the economic loss incurred by the beneficiary is actually irrelevant.
3 comments:
Very well-explained. I am becoming knowledgeable about indemnity insurance. Thanks a lot for this post.
Harrison@Life Insurance Questions
Yes I agree that this kind of insurance is very beneficial. I too had taken up this policy and get very much benefited with this at the time of loss.
commercial insurance company
Great information is contained in this post. Please keep updating your blog.
Professional Indemnity
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