As a design professional, you should know about different coverages that exist. Below is a list of important policies that we’d like you to consider:
• Cyber Liability: What if your system gets hit by Ransomware, a type of virus that encrypts your firms’ data and a ransom to be paid in Bitcoins is demanded by the hackers? This happened to atleast three of our clients in 2016, and a few more since then. Just about any organization that uses technology to do business faces a cyber risk. Luckily, cyber insurance is designed to mitigate losses from a variety of cyber incidents, such as data breaches, infringement of copyright, and network damage. As technology becomes more complex and sophisticated, so do the threats we face, which is why more and more businesses are becoming prepared with cyber liability insurance.
• Employment Practices Liability Insurance (EPLI): Let’s say your employee files a claim against you for wrongful termination, harassment, age discrimination, emotional stress, defamation and right to privacy violation. Employment related risks are becoming more prevalent in today’s workplace, and the treatment of employees and the actions of your other employees can be grounds for lawsuits and fines. This type of claim is among the fastest growing in the industry.
• Crime: Imagine if $100,000 was transferred out of your bank account. What would you do? The bank would insist that they had received proper instructions for the transfer. Crime coverage can protect you in case of forgery or alteration, employee theft, robbery, computer crime, and funds transfer fraud, to name a few risks. Working through such losses takes time and money. Being covered from internal and external crime is vital.
• Directors and Officers Liability (D&O): Is there more than one owner of your firm? Sometimes disputes between partners arise, and one owner (or group of owners) accuse the other owner (or group of owners) of making bad business decisions or breaching their duty as a director or officer of the company, which thereby reduces the value of the company. This type of coverage would protect the accused directors and officers, their personal assets, etc.
• Fiduciary Liability: Do you ever “help” employees pick investments for their company-provided retirement plan? What if your employee complains that he or she was not given good advice, or not given enough choices, or given too many choices, leading to a decline in retirement funds? What if an employee was entitled to enroll in the company health plan, but was not enrolled due to an error by your firm’s administrator, then was faced with a huge, uncovered medical bill? Any time you have a legal or ethical relationship of trust with your employees, and you breach that relationship, you could be liable for damages. This type of coverage helps you resolve allegations that you breached your duty in dealing with pension plans, retirement plans, 401ks, profit-sharing, employee benefit, and health and welfare plans.
Take a look at our Insurance Page to see more lines of coverage you should consider!