What Are the Different Types of Liability Insurance?
There are many different types of liability insurance. While general liability is the most common and also required by the Federal Acquisition Regulation (FAR) for Government Contractors, there are other types of liability insurance including:
- Directors and Officers – Directors and officers insurance provides enhanced protection in the event an executive team member makes a mistake that results in a lawsuit.
- Employment Practices Liability – Employment practices liability insurance will protect your company if an employee makes accusations of discrimination, harassment, unjust termination, and more.
- Professional Liability – Professional liability protects a company if an employee is negligent and a third party suffers damages in the course of their work.
- Umbrella Liability – Umbrella insurance is a good idea for those who often deal with private or highly sensitive information that has the potential to result in further claims. This will greatly increase the coverage cap on costs associated with claims incurred.
- And more
To find out which liability coverage options are best for your business needs, contact GovTechTM today.
What Is the Difference Between Liability Insurance and Commercial Insurance?
Liability insurance is one type of commercial insurance. There are many types of commercial insurance available, such as workers’ compensation, property, crime, and more.
GovTechTM helps Government Contractors get the commercial insurance coverages they need, including proper liability coverage.
What Is the Difference Between Professional Liability and General Liability?
Professional liability protects a business from claims specifically related to performing their professional service. Professional liability is used for negligence claims, misrepresentations, and errors or omissions, related to a professional service on behalf of a client.
General liability protects a business from claims in which all businesses are at risk. General liability insurance coverage is used against any claim alleging bodily injury, property damage, personal injury (such as defamation of character like slander and libel), advertising injury, and damage to leased premises.
What Is the Difference Between General Liability and an Umbrella Policy?
An umbrella insurance policy picks up where general liability coverage ends. General liability offers protection for many claims but can have limits to the scope of its protection. An umbrella policy provides additional protection when a business’s general liability policy’s limit has been reached.
What Is the Difference Between D&O and EPLI?
Employment practices liability insurance (EPLI) protects the company as an entity from claims of discrimination and harassment. Directors and officers liability insurance (D&O) protects individuals—directors, officers, and owners—from negligent acts, omissions, or misleading statements that could result in a lawsuit.
What’s the Difference Between Occurrence Coverage and Claims-Made Coverage?
An occurrence policy covers an incident that happened during a specific coverage period, regardless of when the incident is reported. If an incident occurs within the policy period, it will be covered even if it was reported after a policy’s expiration date.
A claims-made policy covers incidents that happened after the retroactive start date of the policy, but are reported during the active policy period. If the incident occurs before the retroactive date, it will not be covered.
What Liability Coverage Do Government Contractors Need?
Government Contractors must comply with the Federal Acquisition Regulation (FAR), which requires general liability, auto insurance, and workers’ compensation.
Outside of FAR, Government Contractors should consider other insurance policies to ensure protection for their business. Professional liability, directors and officers insurance, foreign coverage, umbrella insurance, and more can help Government Contractors stay protected.
For custom coverage solutions, contact GovTechTM today.
Is Liability Coverage Required by Law?
While liability coverage for many business owners is optional, FAR requires Government Contractors to have a liability insurance policy prior to signing a contractual agreement.
Depending on the government agency, additional policies may be required such as professional liability, crime, foreign coverage, and more.
What Other Insurance Coverage Should I Have?
While FAR coverage is a requirement for Government Contractors, these policies won’t give the full protection a Government Contractor’s business needs.
In addition to general liability, auto insurance, and workers’ compensation, Government Contractors should consider policies for:
- Employment Practices Liability
- Cyber and Data Breach
- Directors and Officers
- Professional Liability
- And more
Who Is Covered Under My Liability Policies?
Most liability insurance policies typically cover the company rather than individuals. Policies like directors and officers insurance can help protect individuals if a lawsuit occurs.
Does My Liability Coverage Extend Nationwide? Abroad?
With GovTechTM, liability coverage extends nationwide. Overseas coverage is typically policy-dependent and may require additional policies. Defense Base Act coverage provides workers’ compensation internationally, and international exposure and other foreign policies are available for additional liability coverage.
How Much Is Liability Insurance?
Costs for liability insurance vary by plan. GovTechTM operates using a unique policyholder ownership model along with underwriting policies specifically designed for Government Contractors. This allows GovTechTM to offer savings as high as 40% less than traditional carriers.
Find out more about liability plan pricing by contacting a GovTechTM agent today.
What Is a COI?
COI stands for Certificate of Insurance. This certificate provides a summary of the insurance coverage that a company has that may be required by a third party. They are presented in a standardized format, and are needed when securing a government contract.
How Can I Get a COI?
You can receive a Certificate of Insurance from GovTechTM by completing this simple request form.
How Do I Make a General Liability Insurance Claim?
To make an insurance claim, you can check your policy document section regarding claim reporting, or contact GovTechTM for guidance and claim submissions.
Can I Cancel My Liability Insurance Policy?
Yes, you can cancel your liability insurance policy. Contact GovTechTM to begin the cancellation process. When cancelled, notice will be given to your certificate holders.
When Does My GovTechTM Insurance Policy Renew?
All GovTechTM policies, except the small business liability policy, renew on January 1. Policies held from other carriers may have different renewal dates. If your policy starts at a different point in the year, it will be prorated until renewal on January 1.
Why Should I Choose GovTechTM for Liability Coverage?
GovTechTM specializes in providing insurance to Government Contractors, with an understanding of the unique challenges and needs your business faces.
With policies tailored to your needs, GovTechTM helps your Government Contracting business get the coverage and protection it needs.
For more information on liability and commercial insurance options from GovTechTM, call (202) 468-8324 or contact an agent online.