Superquote Glossary: Indemnity / Indemnification

When an insured person makes a claim, one of the founding principles of insurance is that they are returned to the monetary status they were in prior to the loss occuring.  Of course, this principle is subject to the client having adequate insurance cover, else the principle of average may be applied for under-insured policyholders.

The process of resolving a claim and returning the client to this former position is indemnification.

The vast majority of insurance contracts are indemnity based with the exception of PA (personal accident) polciies or life insurance polciies.  These policies are designed to payout beyond any level of indemnity from the insured events.

If you are looking for Professional Indemnity Insurance, click here.