Definition

An add-on to your insurance policy that provides extra benefits or changes coverage. Riders allow you to customize your policy to better match your needs.

What to consider

  • Read the clause carefully to understand your liabilities.
  • Negotiate terms that fairly allocate risk.
  • Consult a legal advisor if any part seems unclear.

Real world scenarios

  • When a contractor accidentally damages property during a renovation, the indemnity clause in the contract requires him to cover the cost.
  • A software vendor’s contract includes an indemnity clause protecting the client from legal claims arising from data breaches.
  • An event organizer signs a contract with an indemnity clause to cover any accidental injuries during the event.

Related terms

Insurance & Financial Protection