Indemnity Insurance - Liability Insurance South Africa

Often referred to as liability insurance, indemnity insurance covers claims made by third parties for personal injury or damages as a result of negligent actions. Indemnity insurance usually refers to malpractice insurance for doctors and lawyers and errors and omissions insurance for individuals working in the financial field. That is, if a doctor causes personal injury to a patient as a result of negligence, then indemnity insurance cover these claims.

Indemnity insurance does not cover intentional injury or damage. To determine whether or not the claimant’s damages were a result of negligence (or were in fact the fault of the insured), the matter will be heard before a court of law. Often indemnity insurance policies will cover the legal fees of representing the insured. The amount which the policy pays out varies from insurer to insurer, but is usually set to a limit.