What is Indemnity period?

The indemnity period is the duration during which an insurance policy covers the financial losses incurred by a business due to an insured event, typically in property or business interruption insurance. It starts from the date of the incident until the business is restored to its normal operation level or until the specified period ends. This period is crucial for determining claim settlements, as it defines how long the insurer will compensate for lost income or increased expenses. Typically, the length of the indemnity period is specified in the policy and can vary based on the nature of the business and the coverage selected.