The Indemnity Plan provides coverage for both expense and indemnity payments.
Expenses are the costs of defending the claim, including legal fees and disbursements. Sometimes claims are defended by E&O staff lawyers; other times the defence of a claim is referred to private law firms whose lawyers have relevant experience. In either case, E&O’s goal is to defend you with care and skill to protect your financial position and your professional reputation, and in the interests of the insurance program as a whole.
Indemnity payments are payments made on your behalf to compensate a party who suffered a loss as a result of your mistake. This may be an award of compensatory damages made against you in a court action or it may be a settlement of a claim.
The Indemnity Plan does not pay for:
- the return or reimbursement of any property, benefit, commission or fees that you received
- fines, sanctions, penalties or disciplinary hearing costs
- punitive, aggravated or exemplary damages
- orders for payment of any sum resulting directly or indirectly from dishonest appropriation of money or other property by any insured.
The definition of “damages” in the Indemnity Plan sets out what indemnity payments may be made on your behalf.