What is Indemnification in Insurance?

Business owners and employees alike often make the smart choice and find it worth the premiums that must be paid to carry Indemnity Insurance. Indemnity Insurance is a form of protection that safeguards employers against errors in a workplace or job. It will cover them should a malpractice suit should arise from a situation which can include malpractice, miss judgments, or simple errors in a company workplace or organization. It allows employers to safeguard their assets, even if they have to file for bankruptcy and they can still collect money owed in the future.

In regards to the small business owner such as people whom are self-employed or operates under an LLC license it is imperative to carry an Indemnity Insurance policy to protect their personal assets in the event, they were sued and found at fault. In general, almost every large corporation carries large amounts of this type of insurance and really cannot afford not to if they want to be protected and stay in operation. Having a large amount of employees almost guarantees that at some point in time there will be accidents such as some type of property damage, product damage or employee-related injuries that could turn into lawsuits that you may not be prepared to handle.

The uses of indemnification in insurance are broad, especially among all types of Professionals. Among these are people such as doctors, real estate agents, lawyers and so on. Due to malpractice claims, is a given that most doctors carries a large policy. Real estate agent need indemnification insurance for misrepresentation claims that could surface is a legal contract. The bottom line is that any business, no matter the size, cannot afford not to carry Indemnity Insurance. It’s really a smart move to search the insurance market for the best prices and see how much coverage you cannot get for your money.