Professional Liability Insurance Coverage For Technology Businesses
Every business has unique risks that can seriously harm an organization’s operations if not properly protected against. As a business utilizing technology to produce and deliver products and/or services, it’s important to recognize and take precautions against risks that your Commercial General Liability insurance coverage does not include.
Technology Professional Liability insurance coverage, also referred to as Tech Errors and Omissions (E&O) insurance, is essential for companies using technology because it addresses a lack of protection in Commercial General Liability policies, which typically do not cover claims of third-party financial harm.
Who needs Tech E&O Coverage?
Not only technology industry businesses have technology-related risks. Most companies today utilize technology in some part of providing a service or product and need to take the necessary precautions. To ensure your company is covering all bases, a full risk management assessment is needed.
What does Tech E&O cover?
Tech E&O insurance manages risks, resulting from providing a product or service to a third party, that are not covered by a Commercial General Liability insurance policy. Specifically, Tech E&O insurance protects your business in the event that a third party suffers a financial loss due to your product or service not performing as it was intended or expected, including the event of an error or omission committed by your company. These insurance policies also cover defense costs in the event of litigation.
Tech E&O coverage would apply in the following situations:
- A mistake was made and an error in the code of a website or program your company produced isn’t found before it is implemented. A third party depends on this product or service to operate its business and its operations are stalled due to the error, causing them a financial loss.
- A part your company produces is installed in a piece of equipment. After a short amount of time, the component simply stops working, causing the equipment to fail to work, but otherwise not damaging anything or hurting anyone. The third party that relies on this equipment for its business has to stop operations and suffers a financial loss.
- An employee of your company recommends that a client make an adjustment to its network. The client follows the advice and its network crashes as a result, causing a time and financial loss for its operations.
In all of these cases, Commercial General Liability insurance coverage would not cover a claim or any costs of litigation because of the presence of an error and the lack of resulting physical damage to the third party’s property.
Contact me anytime to learn more about protecting yourself with a comprehensive professional liability insurance policy.
Credit: Zywave
Rolling Deep…Literally
I found this picture on Google+ today. Talking about rolling deep! Check this guy out…
Thinking about purchasing a used car? If so, protect yourself from buying a flood damaged vehicle by doing a little research and by having the vehicle thoroughly checked by a mechanic.
Every year, tens of thousands of cars are damaged by floodwaters and more than half end up back on the road. Damaged cars are often repaired cosmetically and moved to adjacent states or other areas of the country where many are sold to unsuspecting consumers. These floodwaters can cause damage to a vehicle’s computer and electrical systems, as well as potentially causing anti-lock braking and airbag systems to malfunction.
Used Car Buying Tips: Detecting and Avoiding Flood Damaged Vehicles (from CARFAX Vehicle History Reports)
To help you avoid cars with water damage, CARFAX offers these tips:
- Check the trunk, glove compartment, the dashboard and below the seats for signs of water damage such as silt, mud or rust.
- Examine upholstery and carpeting closely; if it doesn’t match the interior or fits loosely, it may have been replaced. Discolored, faded or stained materials could indicate water damage.
- Turn the ignition key and make sure that accessory and warning lights and gauges come on and work properly. Make sure the airbag and ABS lights come on.
- Test lights (interior and exterior), windshield wipers, turn signals, cigarette lighter, radio, heater and air conditioner several times to make sure they work.
- Flex some of the wires beneath the dashboard. Wet wires will become brittle upon drying and may crack.
- Take a deep breath and smell for musty odors from mildew.
- Go to a trusted mechanic for a pre-purchase inspection. Always get vehicles checked BEFORE handing over any money.
- Ask to see a vehicle history report.
Facts: Flood Damage from Hurricanes and Tropical Storms
- Hurricane Floyd (1999) damaged 75,000 vehicles and than half were put back out on the road.
- Tropical Storm Allison (2001) – More than 95,000 vehicles flooded by the most extensive tropical storm in U.S. history.
- Hurricane Ivan (2004) – Left more than 100,000 cars submerged in floodwaters throughout the Southeast.
- Hurricane Katrina, Hurricane Rita and Hurricane Wilma (2005) – claimed more than 600,000 cars across the Gulf Coast. Many of these cars still are showing up for sale around the country.
- Hurricane Ike (2008) – more than 100,000 cars in Texas and Louisiana, from Galveston and Houston over to Baton Rouge, were left underwater.
If all else fails, you can do what the dude above did and you won’t have to worry about flood damage to your car.
–JK
Even the Cutest Dog Has a Nasty Bite
Nothing exemplifies “nasty bite” more than the dog you’re about to see in this video. Trust me, it’s worth watching the full 2:33. It gets really good at 1:30. Dog bites aren’t supposed to be funny, but this clip might be an exception
According to the Insurance Information Institute, dog bites accounted for $479 million in homeowners insurance liability claims paid out in 2011 in the United States. Unfortunately, dog bites are now the largest cause of Homeowners Insurance claims in the U.S.
Tips To Lessen Your Risk of Getting Bitten By A Dog
- Never pet dogs without allowing them to smell you first.
- Do not approach a dog that you do not know.
- Do not turn your back to a dog and start to run away if you feel threatened, since their natural instinct is to chase and catch you.
- Avoid disturbing a sleeping or eating dog, as it may bite out of fear.
- Always leave dogs alone who are playing with toys or who are caring for their young.
Have you experienced a dog bite before?
–JK
What To Do In the Event of An Insurance Claim
When you deal with an incident that gives rise to an insurance claim, it’s usually a pretty crappy situation. It can be stressful, terrifying, frightening, and alarming in many cases. First things first, try not to panic. Hopefully it’s an incident you carry insurance for to be protected.
Your insurance contract requires that you report all claims promptly. Contact your insurance carrier or broker as possible after a property, liability, worker’s comp or automobile claim. An insurance company claims adjuster will be assigned to handle your claim. You should then be able to deal directly with the adjuster to settle your claim, but your broker can be there with you to assist you along the way.
Here’s step-by-step suggestions on how you should handle property, liability, workers compensation, and auto insurance claims.
Property Claims
In the event of damage to your building or contents:
- Protect the property from further damage:
- Call the proper authorities and utilities (gas, electric, telephone).
- Take photos of the damage before having emergency repairs made, such as boarding up windows or covering holes in the roof.
- Call your insurance broker or carrier to report the loss.
- Call a contractor to estimate the building damages.
- Separate damaged contents from undamaged contents. Do not discard any items until the claims adjuster gives you the authority to do so.
- Keep records of expenses if you are forced to temporarily relocate your business.
- Do not authorize repairs until the claims adjuster has given you the authority to do so.
After the claim is reported to the insurance company, the claims adjuster will:
- Contact you by phone or mail to discuss the loss
- Arrange for an appraiser to inspect extensively damaged property
- Assist you with your choice of contractors to make the repairs
- Contact you for a settlement
Liability Claims
In the event of injuries or damage to property of others which you allegedly caused:
- Call your insurance broker or carrier to report the claim.
- Forward any correspondence, including a summons from an attorney representing the other party.
- Do not discuss the claim with the other party or their attorney. Refer them to your insurance company’s claims adjuster or to us.
After the claim is reported to the insurance company, the claims adjuster will:
- Contact you to discuss the incident that allegedly caused the injury or damage to the property
- Deal directly with the other party and/or attorney to handle the claim
Workers’ Compensation Claims
In the event an employee is injured on the job:
- Complete the Employer’s First Report of Injury or Disease form for all claims. Either use the “call in” reporting system or fax the original form to the insurance company.
- Forward a copy of the First Report to your broker in the event of a disabling injury or death claim. They should follow-up with the insurance company for their prompt handling of the claim.
- Contact the insurance company to question the status of a claim. If you experience delays or have questions, contact your broker for assistance.
After you report the claim to the insurance company, the claims adjuster will:
- Contact the injured employee to discuss the accident
- Request copies of bills and doctors’ reports for medical treatment administered
- Contact you, the employer, if there is any lost time from work as a result of the injury
Auto Insurance Claims
In the event of an automobile accident:
- Report the accident to the police.
- Obtain information about the other people involved in the accident such as:
- Names, addresses and phone numbers
- Insurance company
- Type of vehicle
- Auto and driver’s license numbers.
- Have your vehicle towed to the nearest repair shop if the vehicle is not drivable. Do not authorize repairs until the claims adjuster gives you the authority to do so.
- Call your insurance broker or carrier to report the accident.
In the event of a windshield, vandalism or theft loss:
- Report the vandalism loss or theft to the police.
- Call us to report a loss.
After the claim is reported to the insurance company, the claims adjuster will:
- Contact you to request details of the accident and repair estimates
- Arrange for an appraiser to inspect the damages of vehicles that are not drivable or extensively damaged
- Contact you for a settlement
- Deal directly with the others involved in the accident
You should not talk to others involved in the accident, but refer them to your claims adjuster.
-JK
Source: Zywave, Inc.
Video – Car Crashing into House
Stupidity of others is up there on the list of reasons why you should carry home and auto insurance.
You might wonder sometimes why you ever carry home and auto insurance. “It can never happen to me” right?
Perhaps…until this guy comes driving down your block
Need a review of your home, auto, or renters insurance policies?
Call me! I can do that too.
-JK
Soooo…. I’ll Never Drive Behind A Big Rig Ever Again
Watch this video and you’ll be thinking a lot differently about your commute home tonight!
Most underride guards fail to stop deadly crashes
-JK
Small Business Insurance with The Hartford
Working as a broker, I work with a lot of different carriers on behalf of my clients to place their business insurance. One of the major carriers that I work with is The Hartford, an AM Best A (Excellent) XV ($2B or Greater Financial Size) rated carrier. The Hartford’s a great carrier to work with if you have a small business.
Interested in what they have to offer? Contact me anytime to discuss. Maybe we can find you something competitive backed by great coverage.
Here’s a new video featuring their focus on small businesses insurance.
-JK
General Liability Insurance: Avoid Winter Slip-Ups
Here’s a general liability insurance claim waiting to happen. Check out this video…..8 minutes of people falling over the same patch of ice. It’s actually pretty entertaining.
The winter months bring general liability insurance hazards that are typically not factors for during warmer weather – especially, slip and fall hazards. With snow and ice-covered conditions, you run the risk of taking major spills.
Consider the following recommendations to prevent slip and fall injuries during the winter months
- Wear the proper footwear that provides traction on snow and ice. Footwear should be made of anti-slip material; avoid plastic and leather-soled shoes or boots.
- Be cautious when entering and exiting vehicles, and use the vehicle for balance and support.
- Try to walk only in designated areas that are safe for foot traffic. If you notice that a walkway is covered in ice, walk on the grass next to the sidewalk, which will have more traction.
- Avoid inclines that are typically difficult to walk up or down as they may be more treacherous in winter conditions.
- Take small steps to maintain your center of balance, walk slowly and never run. When possible, walk with your hands free to maintain your balance. And despite the cold temperatures, avoid putting your hands in your pockets. This will help you better maintain your balance and allow you to break a fall should you slip.
- Use handrails, walls or anything stationary to assist in steadying your feet.
- Look ahead to the path in front of you to avoid hazards.
- Test a potentially slippery area before stepping on it by tapping your foot on the surface first.
- Remove debris, water and ice from all working walkways.
- Steer clear of roof edges, floor openings and other drop-offs to avoid slipping hazards.
- Sand or salt surfaces covered by ice or snow to provide traction.
- Dry your shoes or boots on floor mats when entering a building.
- If you’re at work, report trip and fall hazards immediately to your supervisor.
-JK
Source: Zywave
CA Carbon Monoxide Poisoning Prevention Act (Senate Bill 183)
Pay close attention if you own an apartment building or dwelling.
Effective January 1, 2013 building owners of dwellings will be required to install and maintain carbon monoxide detectors, in addition to smoke detectors.
The law is called the “Carbon Monoxide Poisoning Prevention Act”, California Senate Bill 183. It requires building owners to install and maintain carbon monoxide (“CO”) detectors in all dwelling units before January 1, 2013. Such devices must be designed to detect carbon monoxide and to sound an alarm. They must be installed outside each sleeping area or bedroom and each level of every unit and would require that the devices be operable at the time the tenant takes possession of the unit.
Senate Bill 183 requires a tenant to notify the landlord if the tenant becomes aware that the device is inoperable or deficient and would require the landlord to correct the reported inoperability or deficiency. A landlord is not in violation if he/she has not received the notification from the tenant.
The new law does not eliminate the requirement for smoke detectors; that is, both smoke detection and carbon monoxide detection devices are required.
Information is available on the internet regarding the new law, and you can see the actual law HERE.
If you haven’t already done so, it is suggested that you install carbon monoxide detectors as soon as possible to your building if you own one. These detectors are readily available at many local retail outlets and internet sellers.
-JK
10 Good Questions To Ask About Business Auto Insurance
On any given workday, you may have employees on the road operating a variety of vehicles. Whether you provide company vehicles or your employees use their own vehicles, commercial auto insurance is a must.
Commercial/ business auto insurance provides coverage for cars, trucks and vans used by you or your employees for business purposes. Your business vehicles are not covered by your businessowners policy or personal auto insurance, so you must buy a separate policy.
When shopping for the right coverage for your business, here are ten good questions to ask about business auto insurance:
1. Is coverage mandatory for a business that uses vehicles?
Yes. Just like with personal auto insurance, it’s against the law to drive a vehicle without insurance to cover injuries or damage to others that an employee causes as a result of a car accident.
2. Is Business Auto Insurance better than Personal Insurance?
Business Auto coverage is similar to the coverage you may carry on your personal auto policy; however, business auto exposures can be more complex requiring specialty coverages to be considered based on individual business needs.
3. How do I find out about what’s out there?
The most effective way to compare rates and coverage available to you is through an independent agent or broker. They should be able to point you to the right type of policy based on the type of business you have and how you use your vehicles.
4. What can I do to influence the premium I pay?
The best ways to keep rates down is to make sure that you’re a safe driver, hire and employ safe drivers and use less expensive vehicles for your business.
5. What factors impact the premium I pay for Business Auto Insurance?
Insurance premiums can be affected by everything from the type of business you operate, to the type of vehicles you own; to the radius you operate your business in, and the driving records of yourself and your employees.
6. What is the reputation of the insurance company?
Make sure you do the research before moving forward with a Business Auto policy. Ask your insurance representative or go online to answer questions like — Do they have a long history? Are they reputable? Do they know your business?
7. What extra benefits are added onto the policy without additional cost?
Every insurance company is different. So make sure to ask about extra benefits when shopping around, because they could prove useful when an accident happens and save you money in the long run.
8. Does coverage vary state to state?
It definitely can. Each state has its own rules and regulations that can affect rates and types of coverage that an insurance carrier can make available to your business.
9. Are all my employees covered by my Business Insurance policy?
They should be, but there are exceptions. This is a very important question to ask when you’re shopping around for the best Business Auto policy.
10. How does the claims process work?
The process usually includes reporting an accident to both the police and your insurance company, assessing the damage, and working with a claims handler. When selecting an insurance carrier, be sure to ask about any benefits they offer in the event of an accident, like a network of repair shops where the work is guaranteed as long as the vehicle is leased or owned.
Source: The Hartford
About Me
I grew up in Fullerton, CA and graduated from Servite High School in Anaheim. I have my Bachelors degree from Loyola Marymount University in Los Angeles. I currently live in Tustin, CA.
Please contact me if you need help with any of the following lines of insurance for your business:
-Cyber / Data Breach
-Commercial Property
-Commercial General Liability
-Products Liability
-Workers Compensation
-Commercial Auto
-Umbrella/Excess Liability
-Errors & Omissions/ Professional Liability
-Employment Practices Liability
-Directors & Officers
-Life & Disability Insurance
Jimmy Kinmartin, CPCU 