About Allianz Insurance | Why Get Indemnity™ has partnered? (2024)

FAQs

What is an indemnity insurance policy? ›

Indemnity insurance is a type of insurance policy where the insurance company guarantees compensation for losses or damages sustained by a policyholder. Indemnity insurance is designed to protect professionals and business owners when found to be at fault for a specific event such as misjudgment.

Professional Indemnity Insurance for businesses

We protect professionals such as lawyers, auditors or accountants and their business from the financial consequences of professional errors.

Indemnity can be defined as a contractual obligation to compensate an individual or business for damages or losses they experience. Put another way, an insurance company indemnifies a policyholder by restoring them to their prior financial status, or making them “whole” again, in the event of a covered event or peril.

For example, in the case of home insurance, the homeowner pays insurance premiums to the insurance company in exchange for the assurance that the homeowner will be indemnified if the house sustains damage from fire, natural disasters, or other perils specified in the insurance agreement.

There's nothing inherently wrong with having an indemnity that can apply to claims between the parties—if that's what the parties intend. But if the parties want the indemnity to apply only to third-party claims, they can say so in the contract. For example: “… from all third-party claims, losses…”

Normally, an indemnity policy will allow the sale to go through quickly and at little expense compared to the cost of investigating the risk or defect further. However, in many cases you may feel that a particular policy may not be strictly necessary.

For many businesses, Professional Indemnity insurance is not mandatory. However, some occupations are required to have minimum amounts of PI coverage. This requirement may be set by state or federal legislation, a professional regulator, or an industry body.

Does professional indemnity insurance cover bodily injury? Professional indemnity insurance can cover third party compensation for bodily injury, but only if the injury is caused by your negligence in performing your professional duties.

What is the cost of professional indemnity insurance? AXA customers pay prices from £6.17* a month or £75** a year for professional indemnity insurance. It's important to note that no two businesses have the same cost. There are several other factors that impact how much your premium will be.

What are the disadvantages of indemnity health insurance? ›

It doesn't cover prescription drugs and typically won't work for those with pre-existing conditions. Coverage is not guaranteed and there will be limits, which vary from one plan to another.

In the indemnity clause, one party commits to compensate another party for any prospective loss or damage. More common is in insurance contracts, in exchange for premiums paid by the insured to the insurer, the insurer offers to compensate the insured for any potential damages or losses.

Professional indemnity insurance also rarely covers things like bodily injury, fines and penalties or financial losses due to war or pollution and radioactive contamination. There is a financial limit that a policy will pay out in the event of a successful claim, this is called the Limit of Indemnity.

Unlike managed care plans, such as HMOs or PPOs, which require individuals to select healthcare professionals from within a predefined network, indemnity plans allow you to access care from any licensed provider or facility across the country.

Both indemnification and insurance transfer risk and guard against financial losses, but they do so differently: Indemnification transfers risk between contracting parties through a non-insurance agreement. Insurance transfers risk from one party to another in exchange for payment.

Unlike managed care plans, such as HMOs or PPOs, which require individuals to select healthcare professionals from within a predefined network, indemnity plans allow you to access care from any licensed provider or facility across the country.

A contract of insurance cases to be a contract of indemnity when the insurance company promises to pay a fixed sum of money whether the insured has suffered any loss or not.