Indemnity insurance is synonymous with the term "compensation insurance". It commonly refers to compensating an individual or individuals for financial damage or loss. Indemnity insurance will cover individuals or corporate entities losses and damages that are incurred as a result of lawsuits. Indemnity insurance policies will only pay amounts to the insured that the insured can prove was lost from liability claims. Indemnity insurance policies will usually have a limit on the benefit that the insured is able to claim. The fact that only the lost amount will be paid out differentiates indemnity insurance from normal insurance products, such as life insurance. With life insurance an entire lump sum is paid out to beneficiaries in the event of a claim.