If you own business or a professional, you might want to know about indemnity insurance. And many people probably never heard about this type of insurance before or unfamiliar with this term. So, what is indemnity insurance? Indemnity insurance is a protection type of insurance for professionals and business owners for their particular loss or fault. The indemnity itself means an obligation by a person (indemnitor) to provide compensation for a particular loss suffered by another person (indemnitee). Malpractice insurance and errors and omissions insurance are typical examples of indemnity insurance. 

Let say you have design related business then you are alleged to have provided inadequate service or designs to your client; violating copyright or confidentiality, your professional indemnity insurance will provide cover for legal costs (if your client take legal action against you) and expenses as well as compensation payable to your client to amend your mistake. It sounds trivial but you might suffer huge financial loss from client's complaint.

The reasons why you need Professional Indemnity Insurance:

Generally, professional indemnity insurance company gives wide range covers, including:

Professionals involved in financial and legal services generally carried indemnity insurance, such as financial advisors, insurance agents, accountants, mortgage brokers and attorneys. Many medical practitioners also carry malpractice insurance to protects them from civil claims from professional negligence resulting in physical or mental harm to patients. Another professions, such as contractors, consultants and maintenance professionals carry this insurance as well because of their "performance failure" claims.