General Liability Insurance Archives

Filling Gaps: Errors & Omissions for Contractors

At first blush, the very term “general liability” might strike you as a big enough blanket to cover just about any ordinary event from a insurance standpoint. After all, “general” is right there in the name, right?

Well, not so fast, friend.

A general liability policy does offer coverage of a fair scope of routine exposures, but not all. For those who make their living as contractors to outside clients, additional coverage in the form of an errors and omissions (E&O) insurance policy many times makes financial sense.

An E&O policy for contractors covers the policyholder for negligent acts and omissions that may harm his or her clients. An E&O policy is also known as a professional liability insurance (PLI) policy, and is often deemed an essential coverage for professionals who provide a service for a fee.

For example, say a contractor did a substandard job installing equipment for a business client. Under general liability coverage, it would be up to that contractor to replace the work at cost. But with E&O coverage, the contractor’s insurance provider would be able to pay the claim, thereby saving the contractor those out-of-pocket costs.

E&O coverage fills a potentially significant financial gap for contractors. A word of warning, however – it can be difficult to acquire this additional coverage if the contractor has been subject to similar issues with clients in the past.

It’s always a good idea to see where any possible gaps in your liability coverage may exist. Talk with the professionals at The Reschini Group to learn more.

The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Not Quite Enough: General Liability Insufficient for Cyber Coverage

Take a look at your business’ general liability insurance policy, and you’ll probably see a reference to property damage. To the uninitiated, that sounds like it covers a multitude of potential events – even an online hack or attack, right?

Wrong. Seriously wrong.

Cyber liability insurance is not automatically included in a general liability policy. Cyber liability insurance, priced and purchased as its own policy, can pay for expenses if a small business suffers a data breach or malicious software attack, including customer notification, credit monitoring, legal fees, and fines.

According to Insureon.com, when criminals infiltrate a network, steal data, or hold data hostage, the business they steal from could be held liable. A data breach at a small business can end up costing thousands of dollars in customer notification expenses, legal fees, and fines or settlements. In fact, the average cost of a small business data breach is $86,500, according to the Internet security firm Kaspersky Labs. The coverage included in cyber liability insurance pays these costs, allowing your company to survive a breach.

And don’t assume that hackers won’t come after small businesses. A recent report by Verizon found that 61% of all cyberattacks hit small businesses, and that those attacks often succeed because small businesses are less likely to have a strong defense.

Cyber liability insurance is key for companies that handle sensitive information, work in the cloud, operate in cybersecurity, or typically handle:.

Credit card or bank account information
Medical information
Social Security or driver license numbers
Customer names, email addresses, phone numbers, and addresses
Cybersecurity for other businesses

Contact the professionals at The Reschini Group to learn more about fashioning an appropriate cyber liability insurance package for your business. Your existing general liability policy may not be quite enough.

Make No Mistake: Best EPLI Coverage Gained as a Standalone Policy

You can’t be kind of pregnant. You can’t be kind of deceased. With some of life’s developments, you really don’t have a choice. It’s all or nothing.

But in others, the choice remains open – yet, it might be best to go all-in anyway. Such is the advice of professionals when it comes to Employment Practices Liability Insurance, or EPLI.

The International Risk Management Institute defines EPLI as: “A type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful termination, discrimination, sexual harassment, and retaliation. In addition, the policies cover claims from a variety of other types of inappropriate workplace conduct, including (but not limited to) employment-related: defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation. The policies cover directors and officers, management personnel, and employees as insureds.”

Coverage can be issued through an addendum to a General Liability policy or as a separate endorsement. EPLI also typically carries a warranty covering whether the policyholder is aware of any workplace issues related to harassment, discrimination, or any of the other issues cited in the definition above.

EPLI issued as a full standalone policy remains the preferred method, since the policy is designed to provide a more robust coverage with separate limits from the General Liability form. Regardless of how you purchase it, having EPLI coverage is highly recommended.

There are some instances where it’s smart to go all-in, even when you have the option to take a smaller, easier course. But don’t be fooled. Be smart. Be covered fully. EPLI is one of those instances.

Contact the team of professionals at the Reschini Group for more information on how an EPLI policy can help protect your organization.