Insurance Indemnity Vs Replacement. Let me set the scene. Indemnity is a comprehensive form of insurance compensation for damages or loss.
The insurance company’s job now is to fix or replace everything so that everyone is back in the same position they were before. A certificate of insurance is a document issued by the insurance company that verifies the existence of certain insurance coverage and the limits of liability for each type of coverage. If the insured is paid a sum greater than that which represents the loss so that he or she profits the indemnity principle is violated.