Property

What's covered in a property policy?
Property policies separate losses into various types, each with its own conditions and limitations. Personal Property includes the normal contents of your business property. Real Property is permanent property, like a building. Business Interruption covers lost income as a result of a covered peril. Extra Expense reimburses your business for reasonable money spent, over and above normal operating expenses, recover from a covered cause of loss.

Is coverage for Earthquake and Flood included in a standard property policy?
Most policies exclude coverage for earthquake and flood coverage. Separate policies can be obtained for these coverages.

What is Co-Insurance?
Co-insurance is an arrangement by which the policyholder is required to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss.

General Liability

Does Product Liability coverage in the policy provide what I need related to my software products and services?
No, the Product Liability coverage in the policy will not provide the coverage you need related to your software products and services. This coverage provides coverage for a tangible product. Your product is intangible which would be covered under an Error’s and Omissions policy.

What does "personal and advertising injury" mean in general liability insurance coverage?
Personal and advertising injury includes liability to a third party for bodily injury or property damages as a result of things like libel, slander, false arrest, wrongful detention, false imprisonment, which occurs during the policy period.

Automobile

Can I provide primary coverage for my employees driving their own autos for company purposes?
This type of coverage is not standard in a Commercial Auto policy. The policy is designed to provide secondary coverage that will step in when the employee’s own policy is insufficient or the company is named in the suit in addition to the employee. In certain situations, insurers will provide this coverage on a primary basis but will charge an additional premium for it.

Should my company require my employees to maintain personal auto insurance?
Yes, all employees that drive for company purposes should maintain their own personal auto insurance policy. Proof should be required annually and kept in the employee’s file.

Property

Bill owns the building in which he runs his computer store. A fire occurred, and not only was Bill’s building damage, but a lot of the pre-packaged software and computer equipment was destroyed. The contractor assigned by the insurance company, informed Bill, that it would take 3 months before Bill can return to his building to continue his normal business operations. In order for Bill to get his business up running immediately he had to find a temporary location to rent and stock, which took him 2 weeks to do. During those two weeks Bills employees were out of work. The insurance company not only paid for the repair of the building and replaced all of the business personal property and inventory that was originally destroyed in the fire, but they also reimbursed Bill for the loss of business he suffered during the two weeks he was out of business, the extra expense he endured by renting at another location for 3 months and for the employees wages that were lost for the 2 weeks it took him to find a temporary location.

General Liability

An independent consultant is provided a workspace at the company's office or visits the company's office on a regular basis. During his working in or visiting the company's office the contractor accidentally damages computer facilities. As per the terms of the contract, the contractor is liable for the cost of repair or replacement of the equipment. Provided he carries a Commercial General Liability policy, the insurer will pay the amounts on his behalf. The hiring company is considered a third party.

A computer company coins a slogan, which is used in a commercial. A third party alleges that the computer company’s use of the slogan violates the third party’s copy write on a similar slogan.

A software developer is served with a lawsuit charging trade libel based on defamatory comments made by one of its senior programmers in an Internet chat room.

A computer in the office you are renting short circuited and caught on fire. The fire spread and damaged part of the office. Since it was your computer, which started the fire, you are liable for the damages.

Automobile

Your business includes sales persons traveling to other states. One sales person flies to Dallas and rents a car. While driving to an appointment they get into a car accident. The driver of the other car is injured, as well as both cars. The business auto policy will cover the damage to both cars, as well as the medical attention to the other driver.