Period Of Indemnity


DEFINITION of 'Period Of Indemnity'

The length of time for which benefits are payable under an insurance policy. Also used to denote the time period for which indemnity or compensation is payable under a business interruption policy. The period of indemnity is usually the most critical component of quantifying the business interruption loss.

BREAKING DOWN 'Period Of Indemnity'

For example, if a disability policy provides for six months of income in the event of an accident, the period of indemnity would be six months. An extended period of indemnity endorsement in a business interruption policy provides insurance coverage for loss of income for a specified period after the damaged property has been repaired and business has reopened.

  1. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the ...
  2. Business Insurance

    Insurance coverage that protects businesses from losses due to ...
  3. Business Liability Insurance

    Insurance that protects a company and/or business owner in the ...
  4. Business Interruption Insurance

    A form of insurance coverage that replaces business income lost ...
  5. Indemnity Insurance

    An insurance policy that aims to protect business owners and ...
  6. Reinsurance Assisted Placement

    Insurance business that is developed with the help of a reinsurance ...
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