To indemnify means, literally, “to protect you against future loss” and more specifically “to make good the loss suffered by you in compensating for loss or injury” The word ‘insurance’ and ‘indemnity’ are almost synonymous. Both promise to protect you against future loss. Your car insurance assures you of re-imbursement in case of loss due to damage or theft; your health insurance (medi claim) promises to pay for your hospital bills if you fall ill, and so on. Professional Indemnity insurance is meant to protect you against any losses incurred by you by way of having to legally compensate a patient or his relatives for damage caused to the patient in the course of his or her treatment by you.
In other words, it covers your liability, if any, in the course of practicing your profession. Hence I think that the more appropriate term is “Professional Liability Insurance”. WHAT IS THIS…
