Indemnity Insurance
/ɪnˈdɛm.nɪ.ti ɪnˈʃʊərəns/
Definitions
- (n.) A type of insurance that compensates the insured for loss or damage sustained, typically covering liability arising from legal claims.
The company purchased indemnity insurance to cover potential lawsuits from clients.
- (n.) Insurance that promises to pay back the actual cost of loss or damage, rather than a fixed sum.
Indemnity insurance requires proof of loss before payment is made.
Forms
- indemnity insurance
Related terms
See also
Commentary
Indemnity insurance is distinct from fixed-sum insurance; it emphasizes reimbursement for actual losses, often necessitating proof and valuation of damages.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.