Indemnity in Insurance
When an insurance policy provides indemnity, it indicates that the insurer will pay the policyholder for certain unforeseen losses or damages up to a predetermined sum, often the whole cost of the loss. One kind of liability insurance that shields professionals and companies from lawsuits stemming from their carelessness or performance deficiencies is indemnity insurance. Directors and officers liability insurance, errors and omissions insurance, and malpractice insurance are a few types of indemnity insurance. The goal of indemnity insurance is to put the insured person back in the same situation as before the loss or harm happened.