Indemnity to Principal

Indemnity to Principal

An indemnity to principal clause in an insurance policy extends liability coverage to a principal if he is sued as a result of another person's actions.

Because principals are exposed to vicarious liability, they often require their subordinates to carry insurance that extends protection to them in the event of a lawsuit.

A policy with an indemnity to principal clause triggers coverage for the listed principal when he is named in a liability suit involving the insured person.

Having an Indemnity to Principal clause in your policy means that if your principal were to have a claim made against them for work you have completed your insurance policy would cover this as if the claim was made against yourself.

Indemnity to Principal is included in policies purchased though at no extra cost to you.


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