If you own or manage a business, you may have come across indemnity insurance. An indemnity insurance policy generally refers to any insurance policy that protects your business from liability it may owe a third party. These third parties may include customers, members of the public, and employees. This article will explain what indemnity insurance is in more detail. It will also provide an overview of the different indemnity insurances available for business. <\/p>\n\n\n\n
An insurance policy indemnifies or \u2018protects\u2019 the insured if they suffer some sort of loss the insurance policy covers. Consider the following example. <\/p>\n\n\n\n
Say you run a small bookkeeping business<\/a> helping other small businesses manage their accounts and financial statements. One of your employees makes a series of errors on a customer\u2019s accounts, which results in the customer owing a substantial sum of money to HMRC. The customer accordingly claims against your business because it was your business\u2019s fault.<\/p>\n<\/div>\n\n\n\n In this instance, your business is responsible for the customer’s loss. As a result, the third party (or their insurer) has a right to claim against you to recover their damages. However, depending on your insurance coverage, your business may have an insurance policy that will indemnify you for any loss you suffer due to your liability.\u00a0<\/p>\n\n\n\n In other words, you can claim the policy provided you have adequate coverage. If the insurer approves the claim, they will meet your costs on your behalf. Alternatively, the insurer will reimburse you if you have already paid the costs yourself. <\/p>\n\n\n\n There are different kinds of indemnity or liability insurance which go by various names. Below are the four main kinds of indemnity insurance:<\/p>\n\n\n\nWhat Are the Different Kinds of Indemnity Insurance Policies?<\/h2>\n\n\n\n
Insurance Type<\/strong><\/td> Explanation<\/strong><\/td><\/tr> Employer\u2019s Liability<\/a> <\/td> Any business that employs individuals must have employer\u2019s liability insurance. This protects your business from any liability you may owe to your employees if they injure themselves at work. <\/td><\/tr> Professional Indemnity <\/td> Professional indemnity insurance (P&I), or errors and omissions insurance, is relevant for solicitors, accountants, consultants, and financial advisers.
P&I protects your business if it makes a mistake during any service. As many regulatory bodies regulate these professions, you may have to obtain P&I to operate in a regulated sector. <\/td><\/tr>Public Liability <\/td> Public liability insurance protects your business from any injury a third party suffers in the course of your business. For instance, if a customer trips and falls at your shop. <\/td><\/tr> Product Liability<\/a> <\/strong><\/td> Product liability insurance is relevant for manufacturers and some retailers. This policy will cover any loss if someone is injured or suffers a loss due to a faulty good you produced or sold. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n