When is indemnity insurance required

If someone has given you money to help with your deposit, you could need indemnity insurance. Because, if that person is ever declared bankrupt, their creditors could make a claim on your property. The insurance could protect you from lost value if this occurred.

Do you have to have indemnity insurance?

Is professional indemnity insurance a legal requirement? PI insurance is not a legal requirement. However, if your profession is deemed high-risk, some professional bodies, governments and clients may request you have a minimum level of cover before allowing you to operate or doing business with you.

What are the reasons for indemnity?

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.

What is the rule of indemnity?

Professional indemnity insurance isn't compulsory under the law, but the rules of some regulators and professional bodies mean it's compulsory for some professions, including solicitors, financial advisers, accountants and architects. It's also required by some client contracts.