An indemnity policy is a type of insurance policy that compensates an insured party for certain unexpected damages or losses up to a certain limit. The term "indemnity" refers to an agreement between two parties in which one party is responsible for compensating another for damages or losses they may incur. Indemnity insurance is designed to protect professionals and business owners when found to be at fault for a specific event such as misjudgment. Indemnity insurance policies offer flexibility and the power to take control of your healthcare coverage. Here are some key features of an indemnity policy:

• Compensation: The insurer promises to make the insured party whole again for any covered loss in exchange for premiums the policyholder pays.

• Coverage: Indemnity insurance policies cover various types of insurance policies that utilize the concept of indemnity, including auto insurance, homeowners insurance, pet insurance, health insurance, and business insurance.

• Flexibility: Indemnity insurance allows you the freedom to choose your own medical provider or healthcare services without worrying about if its in the insurance providers network.

• Exclusions: Each insurance policy will have its own set of exclusions. In general, you will not be indemnified for any expenses outside of the policy’s parameters, nor will you receive restitution at a higher value than what you previously possessed.

Indemnity insurance policies can sometimes cost less for those who know how to comparison shop and negotiate their healthcare costs. However, indemnity insurance has its advantages and disadvantages, like any other form of insurance.