What is personal indemnity insurance?

Personal indemnity insurance also known as personal liability insurance is a type of insurance policy provided by insurance companies where the companies guarantees compensation for losses or damages that are sustained by the policyholder.
This insurance is created to protect professionals and business companies in case they are found to be at fault for a particular event such as misjudgment. In a legal way indemnity insurance can be explained as an exemption from liability of damages. Insurance is being paid by the insured parties. This coverage amount companies provide the coverage in exchange for premiums that paid by the company is limited to a certain amount which may usually range up to the amount of the loss itself.
Professionals who are involved in financial and legal services such as financial advisors, insurance agents, accountants, mortgage brokers, attorneys etc. must take the benefits of indemnity insurance because these professionals are potentially liable for negligence.