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What is Indemnity?
Indemnity is the legal philosophy upon which the concept of most insurance policies rely on. Indemnity is protection from loss and damage claims filed by another person. For example, the owner of an amusement park may have indemnity insurance to compensate visitors injured on his or her property. The eventual insurance payout would be enough to restore the injured person back to the financial state he or she was in before the accident, but nothing more. Only a legal lawsuit brought against the park owner could result in additional damages if legislation of a particular jurisdiction allowed such. Indemnity insurance protects the holder from suffering financial loss due to a lawsuit.
The principle behind indemnity is a financial restoration to a level just before the accident or injury or illegal act. Most laws concerning civil court actions also use indemnity as a measuring stick for damages. If a plaintiff is entitled to compensation for the actions of the defendant, the amount awarded should only bring him or her back to a state of as before the injury took place. Whatever actual losses were suffered would be thus repaid.
Indemnity is the legal philosophy upon which the concept of most insurance policies rely on. Indemnity is protection from loss and damage claims filed by another person. For example, the owner of an amusement park may have indemnity insurance to compensate visitors injured on his or her property. The eventual insurance payout would be enough to restore the injured person back to the financial state he or she was in before the accident, but nothing more. Only a legal lawsuit brought against the park owner could result in additional damages if legislation of a particular jurisdiction allowed such. Indemnity insurance protects the holder from suffering financial loss due to a lawsuit.
The principle behind indemnity is a financial restoration to a level just before the accident or injury or illegal act. Most laws concerning civil court actions also use indemnity as a measuring stick for damages. If a plaintiff is entitled to compensation for the actions of the defendant, the amount awarded should only bring him or her back to a state of as before the injury took place. Whatever actual losses were suffered would be thus repaid.