Are you on a plan that has gaps in-hospital coverage? A hospital indemnity plan is a low-cost flexible plan. Hospital Indemnity plans pay you if you are hospitalized. This allows you to not have to take money out of your pocket. The plan also includes several optional riders. The riders that can be selected are daily skilled nursing facility indemnity, doctor’s visit indemnity, and outpatient surgery indemnity. Other offered are ER and ambulance indemnity, lump-sum cancer indemnity, and outpatient rehabilitation indemnity.