Travel insurance is nowadays one of the must haves in traveling, either within or outside the country. These products are more complex than other insurances because they cover losses of personal belongings, medical expenses (usually emergency interventions but not limited to), expenses due to repatriation or returns, cancellations of flights, delays, cases of theft or compensation for any baggage delay or loss, accidental death, damages caused to rental cars.
Different insurance companies will provide different combination of risks covered by travel insurance. The insured party must observe certain limitations in order to benefit from the insurance payment, which in normal conditions would not put his life, health or personal property to any unnecessary risks. However, there are special products offering coverage for high risk situation, such as certain sports, activities, traveling to higher risk countries, combat zones, etc.
In fact, travel insurance means that against payment of an insurance fee, a person can transfer onto the insurance company, almost any risks or potential losses related to their travels. Travel insurance is merely a small part of a larger category of insurances, called indemnity insurance.
When a person or business buys an indemnity insurance policy, their intention is to protect that individual or the company owners, or the employees for that matter in the event of an economic loss, default, misjudgment, legal action. The amount reimbursed is limited to the amount covered by the insurance policy and is subject to proving the loss to the insurance company before recovering the amount.
Professional indemnity insurance is more common and a necessity in certain fields such as medicine, law, constructions, engineering and accountancy. It basically covers damages caused to your clients by a mistake, error in judgment, ill-advice, failure to act from your part. Companies are insured against legal liability for errors committed in performance of services to the clients. This also includes legal expenses required for defense in case the person or company under default is sued by the client. It is very important to know that if you are not responsible for the damages claimed by the client, the insurance company will assist you in proving your innocence, including financially.
Prize indemnity insurance is another interesting product in the same class of indemnity insurance. Participants to a competition or promotion are offered the chance to win a prize it is actually the insurance company that will reimburse the prize in return for cashing in a premium from the promoter.