Indemnity insurance is a broad description of protection against specified liabilities or losses under a contract. Professional indemnity is one important category, but the word indemnity alone does not identify a complete policy or guarantee reimbursement.
The distinction that matters
Professional advice, physical property damage, contractual indemnities and the cost of correcting work can be treated differently. Explain the activity and alleged loss before asking whether indemnity cover applies.
What to check
- The insuring clause and declared professional service.
- Claims-made or occurrence-based timing.
- Contractual liability and rectification exclusions.
- Limits, defence costs and notification duties.
Example to discuss
For an allegation about incorrect advice, ask the provider to distinguish the professional liability claim from the cost of simply redoing the original work.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.