The Principle of Indemnity in Insurance Law

Indemnification is the principle of restoring or reimbursing one to the full extent of their loss. The principle of indemnity is used exclusively in the property and casualty fields. Your insurance policy is a contract. This contract is personal, aleatory and a conditional contract of adhesion that is legally enforceable between you and your insurance company. Mediation, arbitration and appraisals are some of the forms of dispute resolution a public adjuster may leverage on your behalf.

Ambiguities if found in a contract of adhesion are interpreted against the party that wrote the contract and therefore any unclear language or policy provision is interpreted against the insurance company and in the insured’s favor. Having a polished professional who understands contracts and this principle on your side of the fence will level the playing field between you and your insurance company.