Indemnity-focused

Indemnity-focused describes a policy, approach, or agreement primarily concerned with ensuring financial protection and compensation for losses, damages, or liabilities. It emphasizes the restoration of the insured or protected party to their original financial state before the occurrence of a covered event. This perspective prioritizes minimizing financial risk and providing a safety net against potential financial burdens, often involving detailed contractual provisions outlining the scope of coverage, exclusions, and the mechanisms for calculating and dispensing compensation. It's a preventative measure designed to shield individuals and organizations from financial devastation.

Indemnity-focused meaning with examples

• The insurance company adopted an indemnity-focused strategy, prioritizing comprehensive coverage for medical expenses to ensure policyholders were financially protected from unexpected illnesses. This meant higher premiums, but also reduced the financial strain on those using the services offered. It offered policies that included all necessary treatments and procedures.
• Following the cyberattack, the company's legal team negotiated an indemnity-focused settlement with the data breach vendors, aiming to fully cover the costs associated with data recovery, legal fees, and potential fines. They tried to cover the largest possible liabilities to prevent the greatest future losses, prioritizing their own coverage.
• When signing the construction contract, the owner insisted on an indemnity-focused clause holding the contractor responsible for any damages or injuries that might occur during the project. It shifted the majority of the financial risk to the company conducting the building's infrastructure work, protecting the owner.
• The government's disaster relief program was designed to be indemnity-focused, offering financial assistance to individuals and businesses to cover property damage and lost income following a natural disaster. The programs were created with many checks and balances to ensure fair distribution.