The Specialty Computer Insurance Guide
Computer Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Computer Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Computer Insurance policies they might need to do business.
Learn about Specialty Computer Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Computer Insurance Types
Click on the links below to learn more about Specialty Computer Insurance types and coverages:
- Computer Software Designers Errors And Omissions Insurance
- Cyber Liability Insurance
- Document Destruction Professional Liability Insurance
- Electronic Data Processors Errors And Omissions Insurance
- Web Designers Errors And Omissions Insurance
- Internet Liability Insurance
- Unauthorized Computer Access Insurance
What Is Computer Software Designers Errors And Omissions Insurance?
This insurance covers errors in programs or in systems designed by computer software designers and consultants. In many cases, computer consultants' errors and omissions coverage is written as part of a package arranged for computer firms.
What Is Cyber Liability Insurance?
Commercial and personal lines carriers restrict coverage related to online activities. As a result, separate cyber liability coverage forms and endorsements are necessary to cover exposures such as libel, slander, infringement of copyright, and invasion of privacy. Coverage is also needed when hackers infiltrate a company's computer system and steal valuable third-party information, such as social security numbers, credit card numbers, and health information. Many companies offer cyber liability coverage but forms are not standardized. Some companies include first party coverage for damage to computer systems because of hacking and other types of viruses.
What Is Document Destruction Professional Liability Insurance?
Businesses are (or should be) concerned with privacy and confidentiality issues that relate to their customers' information. Document destruction businesses can be hired to destroy such confidential customer information. Document destruction professionals are responsible for maintaining and protecting the information's confidentiality and ensuring that the destruction is complete. Professional liability insurance is available that responds to claims that allege improper handling and destruction of the material. Claims may be for alleged unauthorized access to or theft of sensitive documents; intentional acts by an employee; negotiable instruments falling into the wrong hands; identity theft stemming from information on sensitive documents; violation of privacy; negative publicity from the release of sensitive documents; and improper handling of documents required in a court hearing. This coverage is underwritten on a case-by-case basis by:
What Is Electronic Data Processors Errors And Omissions Insurance?
This coverage protects the insured that performs data processing service for others against claims that arise out of a negligent act, error, or omission in its handling and processing of electronic data. The market for this coverage consists of:
What Is Web Designers Errors And Omissions Insurance?
Many businesses have established themselves as specialists in computer website design and consulting. These companies serve small businesses and help them market their products on the Internet. Other services provided include process reengineering, networking, and technical writing. Insurance package policies have been developed that cover personal injury liability, including libel, slander, copyright, and trade slogan infringement stemming from electronic communication of information or unauthorized access to a website. They may also cover loss or damage to computer equipment or media and data from vandalism or computer virus, and protection of customers' funds fraudulently withdrawn electronically.
What Is Internet Liability Insurance?
Internet liability is the most rapidly changing area of liability exposure today. The growth in the number of persons who use the Internet regularly has caused most businesses to promote and market their products and services online. These companies have home pages and many communicate with others via email, chat lines, blogs, social media, and more. Liability coverages and exclusions that apply to advertising injury, libel, slander, infringement of copyright, and trademark are being revised to reflect the changing conditions of online communication. A few insurers offer a package of coverages designed to protect businesses that provide online services to their customers and subscribers. These markets write Internet liability:
What Is Unauthorized Computer Access Insurance?
When unauthorized parties gain access to a computer system, its owner must be able to respond to any number of scenarios. Hackers may cause the computer to malfunction or shut down, illegally transfer funds or inventory, destroy records of accounts receivable, or release confidential data. These and other scenarios can result in losses to the computer system operator, to third parties, or both. Unauthorized computer access coverage (or an endorsement to a broader Internet or computer program) is designed to cover expenses of responding to the access, providing liability, and physical damage coverage for injuries or damage and pay the financial damages that may occur after such unauthorized access. Deductibles are often substantial. It is not required to prove intent to achieve financial gain in order for coverage to apply.
Computer Insurance - The Bottom Line
We hope that the Computer Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.