An insurance policy that is to endeavour to safeguard the owner of a business and the employees of said business in the event of a claim based on business negligence, whether that negligence be an act, an error, or an omission. Indemnity insurance policies may vary by example, such as malpractice suits, or other situations whereby a professional is deemed to have made a misjudgment. Such professional indemnity insurance policies are often purchased in the industries of accounting and other finance fields, often by requirement. A deferred compensation policy of insurance is a common means of company directors to shield money owed via future payments, deferred compensation indemnity insurance is another type of policy whereby business owners can protect money owed to them in the future, and also offers coverage if the company owing files for bankruptcy.
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