These are
some of the most common questions we've been asked about liability and property
insurance, but if the information you need isn't here, don't hesitate to send an
e-mail or use the form at the bottom of the page. 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. You and your employees are covered if, for example, you physically
damage a client's server. 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 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, claims of non-performance, 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.
Protecting you and your client in the event of a serious problem is good
business.
4. Who is covered under my liability policies?
All
our professional liability and general liability policies cover business
activities conducted by you and your W2 employees. Your Professional
Liability coverage extends to your 1099 independent
contractors. It is important to note that protection under
the Professional Liability is not 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. Coverages provided only for work produced during the policy
period. And, only those claims which 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 in the computer consulting industry.
6. Is coverage
nationwide, worldwide?
The general liability policy provided
coverage in the US and its territories. Worldwide coverage is provided on
the Professional Liability policy if your work is produced in the USA and
the suit is brought in the USA.
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.
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 Worker's 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?
Techinsurance
offers online claims submission. Simply submit the online report form along with
supporting documentation such as a lawsuit filing or attorney's letter and an
adjuster will be assigned to respond to your claim. Property claims can also be
submitted online.
11. What are the renewal periods?
Policies
are renewed annually.
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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