Indemnity Insurance is an investment that pays rich dividends right in the times of need. Not only does it come to your aid in case of financial penalty levied on you on account of your professional negligence and safeguards your interests on a rainy day, the insurance measure also comes to save your professional future.

However, just picking any Indemnity Insurance off the shelf will not help much. It is imperative that the terms and conditions of the insurance cover as well as its nature are thoroughly understood, before picking up one.

Indemnity Insurance is basically a legal contract between the insured, the beneficiary and the insuring agency. In return of the security and the insurance cover provided to the insured individual, the insuring agency charges a fee known as the "premium". Payment of "premium" as per the clauses and terms of the contract ensures that the insuring agency will extend the benefits of the cover to the insured party.

For professionals going for indemnity insurance, it is important to bear in mind that such an insurance cover is not absolute or limitless either in terms of time, amount or scope. All indemnity insurance provides the cover only for a limited amount of time and up to a certain amount only. Though it covers the liability for damages arising in course of discharge of duty, there are also some exceptions that it observes. For example, if the services are provided when the professional was under the influence of intoxicants or in a manner that is against the law of the land, then indemnity insurance cannot come to the rescue of the wrongdoer. Similarly, if the act was done knowingly and intentionally, then it falls beyond the purview of the indemnity insurance.

As a professional, especially as a freelancer, if you are planning to safeguard your future though an indemnity insurance cover, the point of extreme importance lies in selecting one that matches to your area of work and covering the risk associated with it thereby!

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