0
In many cases when you enter into a contract, whether it is a contract for work, a lease agreement or any other type of contract, there will be clauses covering insurance and indemnification, which is a fancy word for covering someone else's financial loss.
Liability insurance provides money to cover losses to others due to negligence on the part of the insured. In this case, the insurance company is indemnifying the insured.
If there is an indemnification clause in the contract then the contractor must indemnify the contractee as specified. This is most usually done by adding the contractee as either an additional insured (in the case of liability insurance) or as a loss payee (in the case of property insurance) to their existing policy.
If the person entering the contract does not have insurance or does not have sufficient insurance, then those policies can usually be purchased. However, having the insurance or having the contractee named on your policy does not alleviate the indemnification.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
How far contract of insurance are contract of indemnity?
all types of insurance is not a contract of indemnity because life insurance cannot b measured in terms of money , that is why it is not a contract of indemnity
Why Life insurance contract is not a contract of indemnity?
is fire insurance or medi claim (health ins) or motor insurance or life insurance which of them is a contract of indemnity
What is the purpose of insurance?
An insurance policy is a contract of Indemnity. It is a means of transferring risk of financial loss and or financial liability to another party, Namely the insurance company.
Is life insurance a contract of indemnity?
Most insurance contracts are indemnity contracts. Indemnity contracts apply to insurances where the loss suffered can be measured in terms of money.
What type of contract do you need to get money for your damaged property?
Insurance contract with an insurance company Indemnity bond
Is A property or liability insurance policy a business or liability contract?
A property is not a contract or a business. A liability insurance policy is a kind of contract but not a business. the answer is b...
What could professional liability insurance also be named?
Professional Indemnity Insurance Malpractice Insurance Errors and Omissions Insurance
What exactly is professional indemnity insurance?
Professional indemnity, or liability, insurance is a kind of insurance that helps to protect businesses and professionals who offer advice and services in case they are sued by a client for negligence.
What insurance company offers an upgrade in your car in case of accident?
None. Your auto insurance policy is a contract of indemnity. Not a contract of profit.
What is contractual liability insurance?
Contractual liability insurance is something purchased to protect a person entering into a contract, when that contract means that they agree to be responsible for any liability.
What are your options as far as professional indemnity?
It depends on the type of insurance you are looking into as well as your profession some examples are:general liability business insurance and contractor liability insurance, among many others.
What does professional indemnity cover in liability insurance?
Professional indemnity insurance pays for the legal costs and any judgments up to the coverage limit. Also it may help with conducting an investigation to help with your case.
