Indemnity Agreement
Updated: 29 February 2024
What Does Indemnity Agreement Mean?
An indemnity agreement is a legally binding contract or agreement in which one party agrees to pay for certain losses incurred by the other, if those losses occur under certain circumstances. Insurance contracts are a very common example of indemnity agreements.
Insuranceopedia Explains Indemnity Agreement
Insurance companies agree to indemnity contracts because the other party promises to make payments to them as a condition of the contract. In general, the more coverage the insurance company agrees to provide as part of the indemnity agreement, the higher the premiums the policyholder will have to pay them.
Since indemnity agreements are legally binding, insurance companies have a legally enforceable obligation to provide coverage under the terms stipulated in the contract.
Related Definitions
Related Terms
Related Articles
12 Disability Benefit Riders to Improve Your Coverage
Top Tips for Getting Full Protection from Your Auto Insurance Coverage
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree