What is indemnity insurance uk

Professional indemnity insurance protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered. Compensation claims can be brought against you even if you provided a service or offered advice for free.

What does indemnity insurance cover mean?

In simple terms, an indemnity policy is an insurance policy to cover a defect relating to a property. Such policies are commonly used to cover against the cost implications of a third party making a claim against the defects.

Why do I need indemnity insurance?

Indemnity insurance protects against claims arising from possible negligence or failure to perform that result in a client's financial loss or legal entanglement. A client who suffers a loss can file a civil claim.

Who usually pays for indemnity insurance?

Though indemnity policies are always for the benefit of the buyer, they can be purchased by either the buyer or the seller. The seller often pays for the policy if they're likely to lose the sale otherwise.

Is indemnity insurance a good idea?

Indemnity insurance is a relatively inexpensive way of protecting both the seller and buyer from liability in the future. They also reduce delays in the sale if paperwork is missing. Many mortgage lenders and solicitors insist on an indemnity insurance policy being in place before a sale goes through.