Professional Indemnity Insurance Info

Indemnity is a term often used in relation to compensation and reparation. In legal terms, it has a more specific meaning. When you mention the term indemnity, it often refers to a sum paid by a person or business to another person or business by way of compensation. This is usually due to a particular loss suffered by the payee.

Indemnity insurance is an assurance policy that aims to protect business owners and employees when they are found to be at fault. The faults may range from specific circumstances such as misjudgment, loss of client’s original documents, negligent error, encroachment of intellectual property rights, malpractice and the likes.

There are many types of indemnity insurance. These would generally be classified as personal indemnity insurance, professional indemnity insurance and health insurance. There are available professional indemnity insurance policies such as malpractice insurance. It aids professionals such as doctors in cases of claims against medical negligence. There are also the errors and omissions insurance, which aims to indemnify working professionals against claims made in the workplace.

All types of indemnity insurance have a limiting fee on its policies. It applies whether the indemnity insurance is personal, professional or health. Fees can include a deductible and a co-insurance payment. These fees are designed to lower costs by having the insured party pay a small portion of the expense. The indemnity insurance coverage will depend on the type of insurance policy one wants to purchase. Amount of coverage can typically start at $300,000 and go up to as high as $ 1 million for coverage.

Types of indemnity insurance

Personal indemnity insurance

This type of indemnity insurance is usually offered to homeowners, renters and landlords. It protects renters from not being provided proper living conditions and protects landlords from any damage done to their property. Those who are renting a property can be sued if they cause any type of damage to the property. Landlords can be sued if they fail to correct a problem with the property that affects the renter’s living conditions. In either case, the individual or the landlord would need to pay for damages suffered by the other party.

Professional indemnity insurance

This type of indemnity insurance is intended for working professionals or those who have risky jobs. These would include architects, medical practitioners, lawyers, those with consultancy business and the likes. Indemnity insurance policy will pay for legal costs of the policy holder in case of a legal battle in court.

Health insurance

The health insurance is the most basic type of indemnity insurance policy for employees and families. This can come in the form of an individual policy or a group policy. Most employees have mandatory health insurance policies provided by their employers while others choose to pay individually or a group plan for their entire family. This indemnity insurance usually covers medical costs that are not specifically excluded in the policy. These exclusions can include a preexisting condition or some other type of health issue. Coverage can vary depending on the type of indemnity insurance policy and depending on the health preconditions of the policy holder.