Frequently asked questions - You’ve got questions – we’ve got answers!
These are some of the most common questions we’ve been asked about liability and property insurance. If the information you need isn't here, don't hesitate to send an e-mail. We're ready with the answers you need.
1. How much liability insurance do I need?
Due to the growing frequency of professional negligence suits and the sympathies of courts, professional people are now held more accountable for their mistakes than ever before. It is difficult, if not impossible to say how much business insurance you might need in the event of an actual claim.
However, as a rule, most of your client companies will require minimum limits of $1,000,000 in General Liability and $1,000,000 in Professional Liability coverage. The amount of insurance needed by your company depends on your specialty, the size of your company, and the size and type of your largest client companies. If you have questions regarding your situation please contact us.
2. What does general liability insurance cover?
Coverage is provided for claims of bodily injury or property damage liability on your premises or at your customer's location. It is important to note that coverage for physical damage you cause to a client’s computer system is typically not covered under General Liability Insurance. Some client contracts also refer to these policies as Comprehensive Commercial Liability. It is important to remember that these policies exclude Errors and Omissions type claims related to the delivery of your professional services.
3. Why do I need Professional Liability Insurance?
Professional liability coverage, also known as Errors & Omissions insurance, protects you against loss from a claim of alleged negligent acts, errors or omissions in the performance of your professional services. This might include loss of client data; software or system failure; or claims of nonperformance, fraud or negligent oversell. This is a key element in a comprehensive insurance portfolio. In the insurance industry, errors and omissions claims for computer consultants are considered "low-frequency / high-severity" claims. In other words, there are not a lot of claims filed, but the ones that are filed tend to be very expensive. It is simply good business to protect yourself and your client in the event of a serious problem.
4. Who is covered under my liability policies?
All of our professional liability and general liability policies cover IT business activities conducted by you and your W2 employees. Your professional liability coverage also covers you for work done on your behalf by your 1099 independent contractors. However, protection under the Professional Liability is not always provided directly for the independent contractor. Independent contractors should maintain their own insurance to protect themselves.
5. What is "Claims-Made" liability coverage?
All our Professional Liability coverages are offered on a "Claims-Made" basis – only for work produced during the policy period. And, only those claims that are first made against you and are reported to us during the policy period will be covered under the policy. Claims-Made coverage is the most common type in the computer consulting industry.
6. Is coverage nationwide, worldwide?
The general liability policy provides coverage in the United States and its territories. Worldwide coverage is provided on the Professional Liability policy if your work is produced and the suit is brought in the United States. Worldwide coverage including defense in international courts is available from some of our insurance carriers.
7. What are Hired and Non-owned auto coverages?
Hired auto coverage protects your business if you or an employee rents a vehicle in the company name and an accident occurs. Non-owned coverage protects the company if an employee has an accident in his or her own vehicle while on company business and the employee’s personal insurance is inadequate to cover the claim, resulting in a suit against your company.
8. What is an Umbrella Policy?
An umbrella policy provides additional coverage when the limits of insurance on an underlying policy are exceeded. For instance, if you have $1,000,000 coverage under General Liability and you have a claim settlement for $1,500,000, the umbrella policy would pick up the additional amount. Umbrella Liability policies add coverage to General Liability, Hired and Non-owned Auto Liability, and Employer's Liability for a single premium. It is important to note that Umbrella coverage does not apply to the Professional Liability policy.
9. Workers’ Compensation
This coverage is used to comply with the Workers' Compensation Coverage required by your state law. Under this requirement, an employee can be compensated if he or she is injured while working for you, regardless of your negligence as an employer.
10. How do I file an insurance claim?
Contact your TechInsurance representative for instructions on filing claims. In most cases claims are filed directly with the insurance carrier.
11. What are the renewal periods?
Policies are renewed annually.
12. What do I need to have ready to complete an application?
You will need to know basic information about your company’s services and operations. What does your company do? What industries are your clients in? How many locations do you have and what are the addresses? What was your company’s total revenue over the past two years? What is your revenue projection for the coming 12 months? If you need Workers’ Compensation insurance you will need to provide the amount of payroll projected for the coming year in the states where you do business. Most business owners have all the information they need in their head. We do not require tax ID numbers or Social Security numbers to provide a quote.
13. What happens if my business doesn’t fit typical coverage categories?
In most cases we are able to help you identify your risks and then go out to the insurance markets to find coverage that fits your needs.
14. Why should I trust an online agency versus my local neighborhood insurance agent?
We have been in business for more than 10 years and insure many thousands of IT consultants. We understand the IT industry and the risks you face far better than most local agents. We are also much more efficient due to the resources we have developed.
15. Do you have representatives who speak other languages besides English?
Yes, we have representatives who speak Spanish.
16. Will I have to deal with a different rep every time I call?
No, you will work with one representative that will help you get your policies started and once you become a customer, you will have a single personal account manager who will be able to help you with any questions or coverage changes you have.
17. Can I refer friends or colleagues who aren’t in the IT services field?
Yes, we launched our sister site www.businessinsurancenow.com to help small businesses that are not in IT. Business Insurance Now benefits from many of the same technology enhancements that have made TechInsurance an industry leader.
18. What type of information will I need to provide to receive a quote?
Beyond basic contact details about your business, the data needed will vary based on your industry and the type of coverage you select. In most cases it is helpful to have information handy on your revenue, client mix, employee/contractor headcount, payroll details or current insurance policy information. The online application process is customized and streamlined to secure just the information you need to provide for the policy quotes you desire.
Click here to get a quote for the coverage you need. We will forward a detailed quote the following business day, in most cases.
We'll be glad to answer any further questions you might have. Please fill in the form and press 'Submit.' We'll get back to you with the answers you need.
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