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.

RELATED TERMS
  1. Indemnity Insurance

    An insurance policy that aims to protect business owners and ...
  2. Letter Of Indemnity

    1. A letter guaranteeing that contractual provisions will be ...
  3. Business Interruption Insurance

    A form of insurance coverage that replaces business income lost ...
  4. Gross Profits Insurance

    A type of business interruption insurance that provides funds ...
  5. Extra Expense Insurance

    Insurance coverage that provides funds for reasonable and necessary ...
  6. Business Income Coverage Form

    An insurance policy that covers a company's loss of income due ...
Related Articles
  1. Managing Wealth

    How To Choose A Healthcare Plan

    HMOs? PPOs? CDHPs? We'll clear up the confusion so you can find the right coverage.
  2. Financial Advisor

    How Accelerated Benefit Riders Fill Insurance Gaps

    Accelerated benefit riders have become the new darlings in the financial marketplace. Here's why.
  3. Financial Advisor

    What Kind of Insurance Do RIAs Need?

    Advisors spend a lot of time discussing insurance with clients but they also need to consider their own coverage needs as small-business owners
  4. Investing

    Calculating the Accounts Payable Turnover Ratio

    The accounts payable turnover ratio measures the speed at which a company pays its suppliers.
  5. Insurance

    How Long-Term Care Riders on Life Insurance Work

    What is the difference between Accelerated Death Benefit for Chronic Illness and Long-Term Care Riders offered on life insurance policies?
  6. Insurance

    Accidental Death And Dismemberment Insurance

    Accidental death and dismemberment insurance provides coverage if the policyholder dies by accidental means, or loses use of limbs or eyes.
  7. Managing Wealth

    Tips for Insuring Your Salary

    Those with high incomes really can’t afford to be without disability insurance. Here's why.
  8. Insurance

    Why Digital Insurance Is Important

    Don't get caught losing the files on your computer. Here are some insurance policies to think about.
  9. Financial Advisor

    Advising FAs: Explaining Life Insurance to a Client

    Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
  10. Financial Advisor

    Disability and Business Overhead Coverage for the Self-Employed

    What every small business owner or professional needs to know about individual and business overhead disability income insurance plans.
RELATED FAQS
  1. What is the difference between legal liability and public liability?

    Discover the differences between a general legal liability, a specific public liability and a professional indemnity in the ... Read Answer >>
  2. Are accounts payable an asset?

    Find out why the general ledger accounts payable is considered to be a current liability, not a current asset, and how it ... Read Answer >>
  3. What is an elimination period?

    Elimination period is a term used in insurance to refer to the time period between an injury and the receipt of benefit payments. ... Read Answer >>
  4. How are Net Credit Purchases calculated in the accounts payable turnover ratio?

    Find out how to calculate a company's net credit purchases, the figure that makes up the numerator in the accounts payable ... Read Answer >>
Hot Definitions
  1. Co-pay

    A type of insurance policy where the insured pays a specified amount of out-of-pocket expenses for health-care services such ...
  2. Protectionism

    Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local ...
  3. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  4. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  5. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  6. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
Trading Center