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.

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.   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.

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 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.

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.

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.

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.

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.
 
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.

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.

What are the renewal periods?
Policies are renewed annually.

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