Indemnity Insurance Uncomplicated

Indemnity Insurance Uncomplicated

by

Xroadstech

While the concepts involved are really quite simple and easily understood, any discussion of personal indemnity insurance will often leave individuals confused and not knowing what to do.

Indemnity insurance is put in place to protect against the risk of significant financial loss as a result of any damage or injury that the policyholder might cause to a third-party. Simply put, it covers you if you are held responsible for damages when sued by a third-party.

In addition to paying for any damages, the insurer will normally cover any legal expenses for the insured in defending any legal action and will assist in mounting a vigorous defense and in recovering costs from the plaintiff if the insured is found not liable.

Personal and professional indemnity insurance are the two types that most individuals need to consider.

Professional indemnity insurance is designed to protect professionals such as doctors, lawyers, consultants, etc… against damages caused to clients as a result of their actions or inaction and is often referred to as Errors and Omissions Insurance. Should any action or inaction on the part of the professional result in damages being awarded a client then the insurance company would pay thus reducing the financial impact on the insured.

Personal indemnity works in much the same way except that the causes that would lead to needing the insurance has nothing to do with delivering work to clients but rather has to do with individuals being in some way negligent and this negligence causes harm to a third-party. A child injured as a result of having left access to your swimming pool open or a landlord’s negligence resulting in injury to a tenant, are examples that would be covered by personal insurance. As with professional indemnity insurance, the insurance company would cover the insured for any losses and would also pay for legal fees and assist in the defense.

In today’s world, the likelyhood of being sued is far more likely than we would like it to be which is why it is so important to have indemnity insurance in place to protect against serious financial loss. Make sure to discuss your coverage every year with your insurance representative.

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Personal Indemnity Insurance

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Article Source:

ArticleRich.com