An insurance policy that aspires to defend business owners and employees when they are found to be at fault for a precise event such as misjudgment. Classic examples of indemnity insurance include professional insurance policies such as misconduct insurance, and errors and omissions insurance, which indemnify professionals against claims made in the workplace.
The insurance company indemnifies the insured for any loss or damage caused according to the specifics sketched in the indemnity policy. A good example of this policy would be that of a landlord and a tenant, since it can go both ways for them. Tenants typically take the responsibility for any damage caused to the property whereas they are living on it and can be sued by the property owner in case of damage. On the other hand, if the tenant is injured within the property’s premises due to a fault already present in the property and having complained about it to the landlord earlier, the landlord would need to pay for damages. Most companies who insure you for indemnity will not allow you take part in any risky adventure sports, such as bungee jumping or skydiving, before you sign an agreement that does not hold them liable for any injury that you might suffer.
What do you mean by Indemnity insurance?
