Types of Business Insurance
One type of business insurance we haven’t covered yet in our blog series is Errors and omissions insurance.
While this isn’t one of the commonly known types of insurance it can save you money and a headache down the road. Basically, Errors and omissions insurance is coverage for if/when a client holds your company responsible for work that was unsatisfactory or not completed at all.
We bring this up because it’s an insurance that not a lot of business and professionals have and it can be a big help no matter what industry you hail from. Take a look at this piece the Insurance Journal wrote about Errors and omissions insurance for a better idea of how it can help your business.Read More
Getting Company Insurance Coverage
Directors’ and Officers’ coverage (D&O) has long been a favorite among companies that want to protect their directors and officers from damages resulting from alleged or actual wrongful acts they may have committed in their positions. Aside from affording protection against disgruntled shareholders in publicly owned companies, D&O insurance offers privately held companies protection against employees, clients, stockholders, vendors, creditors, and even minority shareholders related by blood or marriage. Directors’ and officers’ liability insurance is often confused with professional liability insurance (or errors and omissions coverage). While professional liability/errors and omissions coverage applies to performance failures and negligence with respect to products and services, directors’ and officers’ liability insurance covers the performance and duties of the executive team.
NOTE: If directors’ and officers’ insurance coverage is not in place to protect their personal assets, it is not likely that investors and members of the board of directors will serve as corporate directors or officers.Read More
Are You Insured for Computer Breaches?
As business growth continues to be driven by computer technology, exposure to breaches of confidential information due to programming errors, network interruption, and client data loss becomes ever more problematic. To meet these challenges, insurance companies offer professional liability insurance called Technology Errors and Omissions Insurance (“Tech E&O”). It can cover litigation costs arising out of their tech products and service when technology providers face lawsuits for negligence or intellectual property infringement. Technology E&O insurance protects against claims of financial loss to a third party caused by errors and failure to perform/poor performance, in addition to covering legal expenses or resulting judgments. This insurance is particularly critical for small technology companies who need financial backing to help them grow.
NOTE: Technology errors and omissions insurance typically provides coverage for liability related to the actions of (sub)contractors working on behalf of the insured company.Read More
Do You Have Business Interruption Service?
After a fire or other catastrophe shuts a business down, business owners may have business insurance that covers all the property losses, but how will they manage to keep going until their building, inventory, and records are back to full production? The answer comes in the form of “business interruption insurance.” While standard property policies provide protection from direct losses, business interruption insurance covers consequential losses that result from the disrupting effects of property damage. This is important because the monetary value of an indirect loss can easily exceed the amount of the underlying direct loss. Business interruption insurance pays for lost net income; relocation to a temporary site; and continuing expenses such as advertising, salaries, mortgage, and taxes.
NOTE: Although commonly overlooked without guidance from an insurance professional, business interruption insurance may be the most valuable insurance that a business can have.Read More
Protection From Employee Claims
With the heightened awareness of workers’ rights that has taken hold in recent years, business owners must protect themselves against claims made by employees, former employees, or potential employees. To meet this need, Employment Practices Liability Insurance is available. It covers the company (including directors and officers) against claims of discrimination (age, sex, race, disability, etc.); wrongful termination of employment; sexual harassment; and other employment-related allegations. It is important to have this coverage in place from the very start because businesses may be vulnerable from the pre-hiring process through the exit interview, even if the employee filing a claim was never hired. Even groundless and fraudulent claims can be expensive to defend against.
NOTE: E-mails and tweets provide a lasting record of comments that some might find offensive or incriminating, which further increases the need for protection against employee claims.Read More
Prepare Your Business for Increasing Cyber Threats
Businesses large and small are realizing many outstanding financial benefits that come with embracing Internet and network-based technology, and they are not the only ones. There is also a plethora of new risks posed by cyber thieves and other malevolent entities.Read More