Monday, December 10, 2012

Understanding Commercial Indemnity Insurance


Commercial indemnity insurance is often referred to as either commercial insurance or indemnity insurance. There are several instances when this kind of insurance is used. This type of insurance has the main purpose or focus of protecting business owners against and the staff of a company against being held liable for a wrong doing. These are typically known as instances like malpractice or errors and omissions insurance. So, in other words, if you are part of an organization and a claim is brought against you, this is the type of policy plan that will keep you safe.

Financial industry related businesses often carry this type of insurance. It also helps in cases where company executives need to still get money that is owed to them, even if the company goes under and files for bankruptcy. But, it can also be used in instances involving health insurance. This acts as a bridge to cover the gap when someone is between health insurance policies. It may not cover all expenses and procedures but can help a person still have basic health insurance coverage.

Commercial Indemnity Insurance for Health Insurance

If you can secure the right kind of commercial or indemnity insurance you should try to find a policy that enables you to see any physician in any practice or type of medicine without incurring extra fees, penalties or costs. Like standard insurance, you will usually still be looking at having to pay a copay, deductible or out of pocket costs that are always in place. A copay is the amount you pay anytime you use your insurance for different reasons. So, while a regular doctor's visit might cost you $20 each time, you may pay $50 for any time you visit the emergency room, if the need should arise.

The deductible is the amount you have to meet annually for your insurance to start to cover you. A standard deductible amount, for example, is usually $500. So, you cover all of your expenses until you meet this amount. Generally, the copay does not work towards the deductible amount and even after the deductible is met you will still pay the copay. This should include prescriptions, too. Make sure if you are getting this type of insurance that you fully understand what is covered so you do not end up with expensive medical bills you could have avoided.

Other Kinds of Commercial Indemnity Insurance

Indemnity insurance can also be used to protect a lender of finances for mortgages in instances when the loan is not repaid. While this does, of course, help the lender it is typically the person paying the loan that is paying the premiums. Also, as mentioned before, this type of policy helps protect professionals should a client or patient file a claim that results in lost monies or income from mistakes and fraud when working with them. So, if you are looking for commercial indemnity insurance you should be aware of what kind of coverage and what kind of policy you need to get the best protection possible.

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