 |
 |
 |
 |
 |
|
|
| Please click one of the following questions to see the answer or ask a question here. |
Questions:
• What is a Business Owner's Policy or BOP?
• What is a "Claims Made "policy ?
• Whats is Cyber Liability Coverage ?
• What is a "Occurrence Made "policy ?
• What types of lawsuits plague professionals?
• Please explain Professional Liability Insurance?
• Do I need Tail coverage?
• Please define "Professional" in a Professional Liability Policy?
• What do BOP's Cover?
• What Coverages are provided for in a Professional Liability Policy?
|
| |
What is a Business Owner's Policy or BOP?
A: A Business Owners Package Policy, referred to as BOP for short, is a combination of liability and property insurance. It is designed to save the small to medium-sized business owner money when compared to buying policies separately.
Typically, to qualify for a BOP, your company must have less than 100 employees and gross revenues should not exceed $1 million.
|
What is a "Claims Made "policy ?
A: A claims-made policy is an insurance policy that covers an insured for claims on active policies, regardless of when the claim event occurred. |
Whats is Cyber Liability Coverage ?
A: A type of insurance designed to cover consumers of technology services or products. More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network.
Most notably, but not exclusively, cyber and privacy policies cover a business' liability for a data breach in which the firms customers personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firms electronic network.
The policies cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft.
In addition, the policies cover liability arising from website media content, as well as property exposures from: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion.
Call your Gold Mountain Insurance Agent at (805) 277-7237 for more information |
What is a "Occurrence Made "policy ?
A: Occurrence policies cover the insured for claim events occurring during the life of the policy or a specific period, even if a claim is filed on an inactive policy or cancelled |
What types of lawsuits plague professionals?
A: Of the suits that can be brought against professionals, two of the most common are breach of contract and negligence in the performance of services. Negligence suits, which are more frequently made, arise from damages sustained due to a professional's failure to perform according to known standards of conduct in his or her field.
Financial consequences of such suits, including the costs to defend them, may be severe. It is critical that professionals recognize their exposures to financial losses, and adopt a risk policy to deal with these exposures.
|
Please explain Professional Liability Insurance?
A: Professional liability insurance protects against claims arising from your acts, errors or omissions in rendering services of a professional nature. Businesses involved in everything from advertising to engineering need to consider this coverage seriously. In fact, users of services such as those provided by lawyers and accountants often require that the insurance be in place before contracting with the professional.
|
Do I need Tail coverage?
A: Tail coverage is a part of how your business insurance coverage works if it is written on a claims-made form. It gives your business protection for claims that are reported after your insurance policy ends. This coverage is also known as an extended reporting period. |
Please define "Professional" in a Professional Liability Policy?
A: The definition of a "professional" has expanded over the years to include those occupations in which special knowledge, skills and close client relationships are paramount. More and more occupations are considered professional occupations, as the trend in American business continues to grow from a manufacturing-based economy to a service-oriented economy. Coupled with the litigious nature of our society, the companies and staff in the service economy are subject to greater exposure to malpractice claims than ever before. Certainly, the need to protect one's business from these claims has become crucial. |
What do BOP's Cover?
A: The first part of BOP coverage is very similar to a stand-alone Commercial General Liability policy. This insures a business against accidents and injury that might happen on its premises, as well as exposures related to its products. It will protect you from payments for bodily injury or property damage to a third party, for medical expenses accruing to the underlying incident, for the cost of defending lawsuits including investigations and settlements, and for any bonds or judgments required during an appeal procedure.
However, this coverage does not include professional liability insurance.
Business Interruption insurance is the next component of a BOP. This coverage covers lost income and expenses incurred when a company suffers disaster-related losses. With Business Interruption insurance, payroll expenses and other regular expenses, such as rent, are covered. Business Owners Policies will usually cover up to a year of lost revenue resulting from a covered property loss.
Business Owners Policies can usually be modified to contain other types of property coverage. To learn more about BOP coverage, please consult with one of Gold Mountain's Property and Casualty agents.
|
What Coverages are provided for in a Professional Liability Policy?
A: These policies typically include coverage for defense costs, even if a suit proves to have no merit. Part of the defense cost component includes legal counseling in order to defend the case. The policy premium is usually based on the following factors:
•the profession involved
•the number of professionals covered
•annual revenues
•the location of the business
•the limit of liability
•the deductible
Gold Mountain Insurance likes to shop carefully for this protection, since eligibility requirements, underwriting criteria, policy language and pricing do vary among insurers.
The "insured" in many of these policies includes the covered organization itself and its past or present partners, directors, officers, and employees while acting within the scope of their duties.
Some policy forms are tailored to a single profession, while others insure the acts of the professional by describing them in a space on the policy declarations page or in an endorsement. A few professionals may obtain professional liability insurance in a Business Owner's Policy (BOP) or similar package-type policy available from some insurers. Sometimes though, it is necessary to secure a separate policy that may be sponsored or endorsed by a trade association.
|
|
 |
 |
 |
 |
|
|
 |
