Hiscox General & Professional Liability Insurance

Home Knowledgebase Hiscox General & Professional Liability Insurance

Professional Liability Policy

Document 1
Occupation is listed as “website design” but it should be “Information Technology” – which is more encompassing and inclusive. We design, but we write code, consult, manage advertising, etc…

Website Design is under their IT umbrella, title isn’t important as long as that’s at least one of the services you provide.

I want our mailing address listed as the business address, not the office. 29030 SW Town Center Loop East 202-214 Wilsonville Oregon 97070

I had them change this, he asked for square footage, which I had no clue about. I said 2,000 sqft, you may need to change that, but he also said it wasn’t that important.

Document 2
At the bottom of page three it states that they can offer a settlement and if I don’t accept it they won’t pay more than the agreed settlement amount. That seems like complete freedom to solicit a settlement of substantial amount and make me pay the difference. I don’t think I should be obligated to that! Can you get any clarity on this?

In most insurance claims (such as property or auto) if someone files a claim, the insurance company decides if it’s worthy of payment, they decide if you were at fault (barring an actual court case), and they decide the amount they are willing to pay and send it to the complainant.

With this insurance, when a claim is filed, they determine what (if any) they would be willing to settle for and they bring it to you for approval. You can decide to agree with their proposal, or to change it, or to not pay at all. It’s up to you. You might feel the claim is totally invalid and refuse to pay. Or you could propose a lesser amount. Or, maybe you decide to settle with the person separate from the insurance company.

Either way, if that person comes back later and sues Hiscox, either because they didn’t feel they got enough or because you dismissed it, Hiscox is saying their liability limit is whatever they proposed to you in the first place. So if they are sued, they will settle and pay the amount they proposed to you, that you turned down, to the person suing. Or, the difference between what they proposed and what you agreed (if there was one).

Item M on Page 7 indicates that we are not covered if someone sues us for intellectual property right infringements. This is essential that we’re protected in our coverage. But then in one of the amendments it seems to say we ARE covered. Can you confirm?

$200k software coverage only. There is no coverage for intellectual property, trademark, copyright infringement, etc. They don’t even offer this coverage. If you need it you’ll need to get a separate policy through a different carrier.

Item O on Page 7 indicates I will not be covered if someone even alleges much less proves there was a breach of contract. This is also something I exclusively need coverage for because contracts aren’t perfect. This might also be resolved int he amendments but I need clarity.

If the ONLY complaint is breech of contract, its not covered. They cover you for negligence and if breech is also a part of that claim, then it’s covered.

Regarding breach of contract, what if the claim is false? Annually we have a client claim we didn’t do something that was promised because they feel our contract is unclear.

If they feel the contract is unclear, that’s not breech of contract. Breech means they say you didn’t do what your contract shows. They have to prove that you didn’t do what the contract says you would. And that is not covered. The insurance covers you for negligence, only. If the claim is for negligence AND breech, then see above.

Same with Item R. We take reasonable security precautions but no security is perfect.

No security coverage. If you get hacked and someone sues, it’s not covered. They call that PII and if you need that, it’s a separate policy for cyber insurance. They have an affiliate that offers that.

Page 26 of 32 I don’t understand item #3.

Most bodily injury/property damage coverage is in the general policy, not professional. But they have this $25k coverage in here in case it’s a part of a professional claim. The $25k is not in addition to the million cap, but a part of it.

General Liability Policy

Guide
Can I get a $0 deductible on equipment?

No, this is not adjustable, it’s fixed.

How do we increase off-premise coverage of equipment to $10,000 – $15,000.

Offsite coverage is only $2,500 and this is fixed, can’t be changed.

If I’m driving to a meeting for work purposes and my equipment is damaged is it covered?

Up to the $2,500 limit.

“Damage to premises rented to you” is $100,000. But what if the entire building burns down and it’s worth a million+?

The $100,000 coverage applies to your stuff in your office only. If more gets damaged and it’s due to your negligence, then the policy cap comes in at one million. If the damage isn’t your fault (say in the case of a fire started by someone/thing outside your personal office space) Then damages outside of your space aren’t covered. Only your stuff in your space. The building and other people’s stuff would be covered by their own policies.




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  • Home Knowledgebase Hiscox General & Professional Liability Insurance

    Professional Liability Policy

    Document 1
    Occupation is listed as “website design” but it should be “Information Technology” – which is more encompassing and inclusive. We design, but we write code, consult, manage advertising, etc…

    Website Design is under their IT umbrella, title isn’t important as long as that’s at least one of the services you provide.

    I want our mailing address listed as the business address, not the office. 29030 SW Town Center Loop East 202-214 Wilsonville Oregon 97070

    I had them change this, he asked for square footage, which I had no clue about. I said 2,000 sqft, you may need to change that, but he also said it wasn’t that important.

    Document 2
    At the bottom of page three it states that they can offer a settlement and if I don’t accept it they won’t pay more than the agreed settlement amount. That seems like complete freedom to solicit a settlement of substantial amount and make me pay the difference. I don’t think I should be obligated to that! Can you get any clarity on this?

    In most insurance claims (such as property or auto) if someone files a claim, the insurance company decides if it’s worthy of payment, they decide if you were at fault (barring an actual court case), and they decide the amount they are willing to pay and send it to the complainant.

    With this insurance, when a claim is filed, they determine what (if any) they would be willing to settle for and they bring it to you for approval. You can decide to agree with their proposal, or to change it, or to not pay at all. It’s up to you. You might feel the claim is totally invalid and refuse to pay. Or you could propose a lesser amount. Or, maybe you decide to settle with the person separate from the insurance company.

    Either way, if that person comes back later and sues Hiscox, either because they didn’t feel they got enough or because you dismissed it, Hiscox is saying their liability limit is whatever they proposed to you in the first place. So if they are sued, they will settle and pay the amount they proposed to you, that you turned down, to the person suing. Or, the difference between what they proposed and what you agreed (if there was one).

    Item M on Page 7 indicates that we are not covered if someone sues us for intellectual property right infringements. This is essential that we’re protected in our coverage. But then in one of the amendments it seems to say we ARE covered. Can you confirm?

    $200k software coverage only. There is no coverage for intellectual property, trademark, copyright infringement, etc. They don’t even offer this coverage. If you need it you’ll need to get a separate policy through a different carrier.

    Item O on Page 7 indicates I will not be covered if someone even alleges much less proves there was a breach of contract. This is also something I exclusively need coverage for because contracts aren’t perfect. This might also be resolved int he amendments but I need clarity.

    If the ONLY complaint is breech of contract, its not covered. They cover you for negligence and if breech is also a part of that claim, then it’s covered.

    Regarding breach of contract, what if the claim is false? Annually we have a client claim we didn’t do something that was promised because they feel our contract is unclear.

    If they feel the contract is unclear, that’s not breech of contract. Breech means they say you didn’t do what your contract shows. They have to prove that you didn’t do what the contract says you would. And that is not covered. The insurance covers you for negligence, only. If the claim is for negligence AND breech, then see above.

    Same with Item R. We take reasonable security precautions but no security is perfect.

    No security coverage. If you get hacked and someone sues, it’s not covered. They call that PII and if you need that, it’s a separate policy for cyber insurance. They have an affiliate that offers that.

    Page 26 of 32 I don’t understand item #3.

    Most bodily injury/property damage coverage is in the general policy, not professional. But they have this $25k coverage in here in case it’s a part of a professional claim. The $25k is not in addition to the million cap, but a part of it.

    General Liability Policy

    Guide
    Can I get a $0 deductible on equipment?

    No, this is not adjustable, it’s fixed.

    How do we increase off-premise coverage of equipment to $10,000 – $15,000.

    Offsite coverage is only $2,500 and this is fixed, can’t be changed.

    If I’m driving to a meeting for work purposes and my equipment is damaged is it covered?

    Up to the $2,500 limit.

    “Damage to premises rented to you” is $100,000. But what if the entire building burns down and it’s worth a million+?

    The $100,000 coverage applies to your stuff in your office only. If more gets damaged and it’s due to your negligence, then the policy cap comes in at one million. If the damage isn’t your fault (say in the case of a fire started by someone/thing outside your personal office space) Then damages outside of your space aren’t covered. Only your stuff in your space. The building and other people’s stuff would be covered by their own policies.

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