What context can I use each word in?
Learn when and how to use these words with these examples!
insurance
Example
I have car insurance in case of an accident. [insurance: noun]
Example
The company offers insurance policies to their employees. [insurance: noun]
indemnity
Example
The contractor provided an indemnity clause in the contract to protect against any damages. [indemnity: noun]
Example
The insurance company agreed to indemnify the policyholder for the damages. [indemnify: verb]
Good things to know
Which word is more common?
Insurance is a more common term than indemnity in everyday language, as it is a more versatile and widely-used form of protection against financial loss or liability.
What’s the difference in the tone of formality between insurance and indemnity?
Indemnity is typically associated with a more formal tone, as it involves legal agreements and documentation. Insurance can be used in both formal and informal contexts.
