indemnity insurance


indemnity insurance
Any insurance designed to compensate a policyholder for a loss suffered, by the payment of money, repair, replacement, or reinstatement. In every case the policyholder is entitled to be put back in the same financial position as he or she was immediately before the event insured against occurred. There must be no element of profit to the policyholder nor any element of loss. Most - but not all - insurance policies are indemnity contracts. For example, personal accident and life-assurance policies are not contracts of indemnity as it is impossible to calculate the value of a lost life or limb (as the value of a car or other property can be calculated).

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • Indemnity Insurance — An insurance policy that aims to protect business owners and employees when they are found to be at fault for a specific event such as misjudgment. Typical examples of indemnity insurance include professional insurance policies such as… …   Investment dictionary

  • indemnity insurance — Insurance under a policy providing indemnification for actual loss or damage suffered by the insured (Shealey v American Health Ins. Corp. 220 SC 79, 66 SE2d 461, 27 ALR2d 942) as distinguished from insurance, particularly insurance under a… …   Ballentine's law dictionary

  • indemnity insurance — risk protection for actions for which a business is liable. Insurance that a business carries to cover the possibility of loss from lawsuits in the event the business or its agents were found at fault when an action occurred. Glossary of Business …   Financial and business terms

  • Prize indemnity insurance — is indemnification insurance for a promotion in which the participants are offered the chance to win prizes. Instead of keeping cash reserves to cover large prizes, the promoter pays a premium to an insurance company, which then reimburses the… …   Wikipedia

  • Protection and indemnity insurance — Protection and indemnity insurance, commonly known as P I, is a form of marine insurance provided by a P I Club. A P I Club is a mutual (i.e. co operative) insurance association that provides cover for its members, who will typically be ship… …   Wikipedia

  • Professional indemnity insurance — provides cover for claims brought against the policyholder due to their professional negligence.There are three types of Professional Indemnity wordings: Negligent act, error or omission This indemnifies the policyholder against… …   Wikipedia

  • mortgage indemnity insurance — UK US noun [U] UK INSURANCE ► a type of insurance that protects a financial organization against loss if someone is unable to pay back their mortgage: »Loans above 75 per cent involve mortgage indemnity insurance. → Compare MORTGAGE PROTECTION… …   Financial and business terms

  • professional indemnity insurance — Insurance that gives protection against legal liability for damage or compensation arising out of any neglect, error or omission committed or alleged to have been committed by or on behalf of the insured in connection with the business. Practical …   Law dictionary

  • Double indemnity (insurance) — This article is about the life insurance clause. For the 1943 crime novel, see Double Indemnity (novel). For the 1944 film noir, see Double Indemnity (film). Double indemnity is a clause or provision in a life insurance or accident policy whereby …   Wikipedia

  • professional indemnity insurance — PII A form of third party insurance that covers a professional person, such as an accountant or auditor, against paying compensation in the event of being sued for negligence. This can include giving defective advice if the person professes to be …   Accounting dictionary