Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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needs indemnity insurance

There are several different types of  business insurance available, but it is important to know who needs indemnity business insurance. Once a person is aware of what it is, they will be able to determine whether it is necessary for them to have.

People that are not aware of what this insurance does may end up losing out on protection that they need or could be using.

Find the best rates on business insurance by comparing quotes online. Enter your zip code above and compare quotes from several insurance companies at once!

What is Indemnity Business Insurance?

There are several different types of insurance that are available for business owners. Indemnity business insurance is something that goes into effect when an employee or business has been determined to be at fault for an incident. These can include such instances as cases of misjudgment or other types of errors. When speaking of errors, it can include cases towards malpractice or errors and omissions in which the business is at fault.

Unlike other types of insurance, indemnity insurance covers a company or business from any damages or losses that they may sustain. Even if a company has filed for bankruptcy in the past, they may still be able to get indemnity business insurance to protect them from future instances.

In other words, this type of insurance creates a safety net for businesses in case they are at fault for an incident so that they do not have to pay for everything out of their own pockets.

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Who it Helps

There are several different types of insurance that can fall under the label of indemnity business insurance, each of them benefiting a different type of organization.

who indemnity insurance helps

  • Businesses that ship or transport a wide range of products will be able to claim losses for lost items or deliveries that did not make it to their destination on time. This does not refer to accidents, but incidents where the driver or some other human error caused the fault.
  • Those that work in construction or design can be protected from litigation while they are working on a project when they have indemnity business insurance coverage.
  • However, the biggest type of company that will benefit from this type of insurance, pertain to those that work in the health profession. They will be covered for any malpractice that occurs in the company so that losses are minimal.

How to Claim Losses

Since indemnity business insurance is based off of human error, there must be a way to prove that there was a loss before money is returned to the company. If it cannot be proven that something has been lost, there will be no way of receiving funding for those items. While it may be a person’s first instinct to hide any signs of human error, it is important to prove that an error occurred so that the proper paperwork can be filed and money can be given out to cover the losses.

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Where to find Indemnity Business Insurance

When people think about getting insurance quotes, they typically do one of these four things:

1. Call a company for a quote
2. Visit the agency to speak with a representative
3. Look online to see prices
4. Ask peers for suggestions

A person’s initial idea is to call or visit the agency that they are thinking about to get a quote. While this seems like a good idea on its own, the agency will do everything it can to get the person inside the building to talk about potential plans. For a person that is simply looking for quotes, this can quickly become an uncomfortable situation if they are not ready to commit.

The next two methods a person may use are to look online for pricing or ask their peers for the best company. While the Internet is a great way to gain information, searching each company one at a time can quickly become tiresome and strenuous. Peers will be able to help the search to an extent, but each company is different and those same plans may not work for each type of business.

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Finding the Best Price

While all of the listed methods are somewhat effective on their own, there is one that combines almost all of these into one simple bundle. There are

finding the best price on indemnity insurance

websites that search a wide range of insurance providers in one quick search and pulls in a variety of results. These insurance comparison websites cast a wider net when compared to looking for one company at a time, and they can also give searchers an approximate quote on how much their coverage will likely cost.

This means that those who simply want a quick quote will not have to deal with the hassle of speaking to an actual person, and they will get their results much faster. Also, several sites may also offer customer reviews so that people know how the reputation of a certain insurance company is. In other words, it can effectively perform all of the searching methods in one simple process.

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Get Indemnity Business Insurance

If a person owns or works in a company where human error can be costly, it is recommended that they obtain indemnity business insurance. Not only will there be coverage if any incident should happen, the losses will be returned as well. Once it is decided that the insurance is beneficial, using an insurance comparison website will ensure that the business gets the best coverage at the lowest possible cost.

Enter your zip code below to begin comparing quotes!