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Indemnity to Principal - Explained

Indemnity to Principal - Explained

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.

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