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
Whether or not you agree with the data-gathering practices of the government and private and publicly held companies, there is no doubting the fact that various entities want to know as much about us as possible. Insurance companies, of course, feed on data that helps them assess risk. For example, the more auto insurers know about drivers’ specific behaviors, the better they are able to properly price premiums. Even now, some auto insurance companies are collecting data about driving habits by analyzing the data collected by sensors in policyholders’ vehicles. These sensors are able to record information about what routes are driven, the number of miles driven, the time of day, speed, and braking patterns. Call it “custom risk assessment.”
NOTE: By comparing the driving data of one person with statistical information of similar drivers on similar routes and similar times, insurance companies may be able to tell if a chosen driver is an above- or below-average risk, and charge accordingly.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