As a general rule, indemnity insurance compensates the policyholder/s for their actual economic loss, up to the limiting amount specified in the schedule of insurance.

What are the administrative expenses of a business that cannot be attributed to any specific business activity, yet are still necessary for the business to function, referred to as?

Net profit includes the profit before tax, and typically includes administration and selling expenses.

The vast majority of policies, even those containing reinstatement and replacement memorandum are, at their heart, contracts or policies of indemnity.

If the Insured elects not to rebuild or replace the destroyed asset, they are:

If the Insured needs a deposit or requests a progress payment, but has not yet replaced the asset, in the vast majority of insurance policies they are entitled to receive a progress payment based on the indemnity value of the:

While most general insurance policies are known to be policies of indemnity, few actually provide a formula showing how the indemnity value is arrived at.

The most common method of determining the indemnity value of a building, plant or machinery, is to start with its full replacement value and then make adjustments for age, wear and tear, and the general condition of the item.

When a property with buildings is for sale, a more appropriate measure of indemnity may be: