What is Cyber Liability Insurance?

Cyber liability insurance protects a business from data breach, where an outside hacker obtains sensitive information of third party data, in some cases large customer bases. There is also coverage available for first party protection, protecting the insured’s own data and information from a cyber related loss.

What is a deductible?

A deductible is the set dollar amount which must be paid by the insured for each benefit period or calendar year for covered services before the insurance begins making payment.

Is Business Insurance required by law?

Business Insurance is required by law depending on your situation. For instance; If you have employees then you are legally obligated to carry Workers Compensation and some states require Unemployment and professional Liability Insurance. Check with your Stolly agent what kind of insurance would be right for your business.

What is a Certificate of Liability Insurance?

This is your proof of coverage. This document will outline what types of liability insurance you have as well as other important policy information. You may need this document when signing contacts or work with certain clients. You can obtain a certificate by calling or emailing your Stolly Agent or Commercial Lines Account Manager.

What is the difference between general liability and professional liability?

Professional Liability policies are designed to protect individuals and organizations from errors and omissions claims. Many businesses provide expertise in their products and services and can be held to a higher standard of care. A general liability policy typically covers bodily injury and property damage to a third party as well as personal injury protection.

What is Directors and Officers Liability Insurance?

Directors and Officers (D&O) Liability Insurance protects board members and officers of an organization from causing financial harm to other parties due to managerial type errors.

What is a Business Owners Policy (BOP)?

A Business Owners Policy (BOP) is a package insurance policy that is typically designed for small to mid-size businesses with similar exposures. Coverages usually include property and liability and several broadened enhancements such as business income coverage.

What is employment-related practices liability coverage?

Employment-Related Practices Liability Coverage is liability and negligence arising from discrimination, wrongful termination, sexual harassment, coercion, and other workplace torts. Coverage typically includes defense costs and is on a claims-made type form.

What is Hired & Non-owned Auto Liability Insurance?

Hired auto liability insurance protects a business owner from liability for vehicles that are rented or hired in the name of the business to be driven on behalf of the business. Non-owned auto liability protects an employer for vehicles driven that are not owned by the business to be driven on behalf of the business.

What is Commercial Auto insurance?

Commercial Auto insurance is vehicle insurance for businesses. If you are using a vehicle for business purposes, the commercial insurance policy protects the insured’s business from auto liability claims. It is not meant to pick up coverage for personal exposures unless specifically endorsed on a policy.

What determines my business insurance premium?

A: Premium varies significantly from industry to industry and size of business. The most determining factor of an insurance premium depends on the coverages chosen by the insured. Liability exposures vary greatly from high risk to low risk and depending on the class of business this can also have a huge factor in pricing. There are many other factors in pricing including (but not limited to) carrier rates, underwriting factors, loss history, experience, agency representation, market conditions, industry averages, reserve regulations, reinsurance availability, and negotiation of terms and conditions.

If I use subcontractors, are they covered under my policy?

Most standard insurance forms cover subcontractors under their policy, but carriers have the right to exclude this coverage. Typically an insurance carrier will cover an uninsured subcontractor who acts “on your behalf” or within the scope of your operations, but has the right to charge the insured the appropriate payroll for the cost of the subcontractor to generate additional premium. This is usually done through an audit.

Why does an insurance company audit my policy?

An insurance company clearly states in policy language that they have the right to look back at an insured’s financials and insurance related reports up to a certain amount of time, typically three years. This allows the insurance carrier to compare forecasted ratable factors to actual ratable factors such as payroll, sales, and number of employees. This ensures that the insurance carrier is getting an accurate premium for the exposure, and that the insured is not underpaying no overpaying for insurance.

How often will a company audit my insurance policy?

This depends on the insurance carrier’s standard procedures, as well as the size of your business. Typically, smaller premium generating policies will be audited less frequently than businesses that generate higher premiums. Larger companies are audited at least once per year.

What is the best way to shop insurance out?

Our recommendation to this question is that you work with a trustworthy and professional agency to handle your insurance needs and provide you with advice and consultation, in addition to insurance products. If you shop out year to year without an agent your risk of oversite in coverage increases significantly. In addition, many carriers are reluctant to offer the best terms and conditions to frequent shoppers, and one year of bad claims can seriously limit your options putting you at a disadvantage.