The following are some standard definitions that help you measure the range of losses possible in the event of damage to your business.
Specialty Coverage
Directors and Officers Liability Coverage
Insures corporate directors and officers against claims, usually brought by stockholders, alleging loss due to mismanagement. The increased number of individuals owning stock and stringent standards imposed by the courts indicate a growing risk. An outside directorship liability policy is available as supplemental protection to assure sufficient limits for the exposure created when a company’s director, officer or employee serves in an outside director position at its request.
Environmental Impairment Liability (Pollution) Coverage
Insures pollution exposure associated with insured’s property and operations, including cleanup and remedial costs or corrective action due to a third-party demand or government order. The pollution exclusion in general liability insurance effectively eliminates coverage for damages for bodily injury, property damage and cleanup costs arising from most types of pollution events. Because of this, customized protection for the pollution exposure of numerous insureds in this category is essential.
Fiduciaries Errors and Omissions (Pension, Welfare and Employee Benefit Funds) Coverage
Protects trustees and fiduciaries of pension, welfare and employee benefits plans from personal liability under the Pension Reform Act of 1974. Certain provisions of the act established new standards for prudent action by fiduciaries. This permits the purchase of insurance out of the assets of the plan or trust to protect the plan and its fiduciaries, as long as the insurer permits recourse against the individual trustee. Some underwriters have made recourse policies available. Available limits of liability range from $250,000 to over $1,000,000 on an annual aggregate basis. Most forms require a minimum deductible of $1,000.
Identity Theft Insurance Coverage
Permits a policyholder to offer reimbursement of financial losses and legal assistance to customers who incurred identity theft while using services of the policyholder. It is primarily designed for credit card companies and other financial institutions that use a customer’s credit card, bank, and brokerage account numbers for online transactions. It is also available for Internet service providers, including companies that provide Internet access via television or wireless devices, credit information service providers that report credit irregularities resulting from identity theft incidents, and associations offering personal insurance under member service programs. Other similar enterprises may also be eligible for this coverage.
International Insurance Coverage
This affords business coverage for companies that conduct business outside the United States. The scope of coverages available may include but are not limited to premises and product liability, automobile liability, workers’ compensation and employers liability, property including transit, kidnap and ransom, confiscation and civil war, crime, business interruption, difference in limits and conditions, and endemic disease.
Internet (Cyberspace) Liability Coverage
Many insurance companies are developing products to provide errors-and-omissions and liability coverage for organizations operating in cyberspace, including coverage for alleged patent infringement, virus introduction, violation of confidentiality and more. Unfortunately, there are no cyber standards that define form, name, or consistency in coverage grants. Despite this fact, a company with an active Web-site presence is exposed to real risks, warranting, so coverage.
Underground Storage Tank (UST) Liability Coverage
The United States Environmental Protection Agency (EPA) requires most property or business owners who operate an underground storage tank containing a petroleum product to show proof of financial responsibility in the event the contents of that underground storage tank should cause bodily injury or property damage, including corrective-action costs, to a third party. These underground storage tanks include those designed to hold heating fuels or used to fueling the insured’s vehicles.
Weather Coverage
Weather insurance protects insured sponsors of outdoor events or product manufacturers from most financial losses that result from inclement weather, such as reduced revenue, increased expenses or inventory loss, and increased product-promotion expenses. It also responds to the need for financial protection of legitimate activities planned in advance but still vulnerable to failure due to weather-related events beyond the insured’s control.