Leliaert Insurance Agency

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Why do I need indemnity insurance?

Indemnity insurance is vital for any policyholder seeking protection against potential third-party claims.

In exchange for monthly or annual premiums, indemnity insurance safeguards policyholders from claims of possible negligence, a failure or omission in service leading to a client’s monetary loss or legal affair, as well as bodily injury and/or property damage covered by the policy.

Indemnity insurance can also cover losses stemming from a perceived breach of privacy or confidentiality, and some industry associations may require it. For example, faulty plans drafted by an engineer, incorrect legal counsel or a safety specialist overlooking hazardous work conditions can all result in financial loss or bodily injury to a third party (with general liability covering slips, trips and falls).

In the form of auto insurance, indemnity insurance is required in most states and helps cover out-of-pocket expenses due to damages. If you crash while driving a vehicle and a passenger is paralyzed, without a proper policy or high enough coverage limit, you may be on the hook for substantial payouts. With the rising costs of litigation and health care, evaluating coverage limits is a sound decision for policyholders.

Directors and officers coverage is another type of indemnity insurance, protecting personal assets of directors or chairpersons operating on behalf of an organization such as a social club or nonprofit.

Professions benefiting from indemnity insurance include:

• attorneys

• doctors

• teachers

• therapists/counselors

• insurance agents

• contractors

• brokers

• accountants

• real estate agents

Additionally, when entrenched in a legal dispute, professionals may opt to settle with a claimant rather than pursue costly litigation. Choosing this route can lead to long-term, negative impacts, as a settlement could be perceived as an admission of guilt.

Indemnity insurance allows policyholders to preserve their professional reputation by covering court costs, representation fees, and, in the event of an unfavorable judgement, any awarded damages.

To learn more about indemnity insurance, contact a Leliaert Insurance Agency staff member today at 574-674-0015.

Filed Under: Uncategorized Tagged With: directors and officers, indemnity, insurance, leliaert auto insurance, leliaert insurance, Why do I need indemnity insurance?

What is Indemnity Insurance? A Total Guide for Professionals – 2021

Indemnity insurance provides coverage to losses and damages incurred by professionals and businesses. Some professions are legally required to have this type of coverage, such as attorneys, medical practitioners, and more. It is most prevalent in cases claiming your practice or business at fault. 

Learn about how indemnity insurance works and whether you need this type of coverage. Find out what it generally covers and when it is legally required to carry this coverage. And, see how it provides flexibility for professionals, certain businesses, and service providers. 

Your Total Guide to Indemnity Insurance and What it is For – 2021

If your business or professional entity incurs damages or losses, indemnity insurance can provide compensation. This type of insurance serves in some cases to exempt an entity from liability regarding a claim of fault or misjudgment that results in a claim of loss or damages. Some of the most common entities that acquire or are required to carry indemnity insurance include legal service providers, financial services, financial advisors, and medical service providers. 

In the event of a medical malpractice claim, indemnity insurance provides compensation to cover the costs of loss and damages. In this policy, the insurance company agrees to make the policyholder fiscally whole as far as they incur losses as a result of their practice. On the other end, the insured party agrees to pay a monthly or annual premium. 

It is Liability Coverage: How Does it Work?

This type of coverage is available as an addition to your existing commercial or business liability insurance. And, many professionals and service providers must have supplemental indemnity coverage. It is an extra form of insurance that is specific to professional practitioners and is often called professional liability insurance. 

It is most relevant if someone to whom a service is provided, claims negligence or loss as a result of a failure for the service provider to perform the agreed-upon service. Unlike general liability insurance, it does not cover losses as a result of damage to property, bodily harm, or compensation for lost wages.

This type of insurance can cover court fees, attorney fees, and other legal costs associated with a civil claim against a professional business entity. Indemnity insurance kicks in to offer compensation for the costs of litigation and any damages that the entity is required to pay. 

Unlike other forms of coverage, this coverage is catered to each policyholder. Each insurance provider has different areas of focus when it comes to indemnity. Talk to a Leliaert insurance associate today to customize the right indemnity insurance policy for your business or professional entity.  

Filed Under: Uncategorized Tagged With: 2021, business insurance, commercial insurance, indemnity

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410 Lincolnway W
Osceola, Indiana 46561

Phone: (574)-674-0015
Fax: (574)-674-9582
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