I have previously written regarding the dangers of having different insurers for your general liability and professional errors and omissions coverage. There are two basic reasons for this:
- Almost invariably this creates gaps in coverage between the two policies.
- In the event of a loss, it is likely that there will be a dispute between insurers as to who is to indemnify you. This can result in a lengthy delay in any settlement. Meanwhile, your customer the claimant is left waiting for the issue to be resolved. This is not good for your customer relations.
Recently there was a vivid example of the gaps in coverage that can result. An integrator was working at a site when there was a large explosion that resulted in substantial property damage exceeding $2,000,000. The integrator had a general liability policy that specifically excluded losses arising from professional services, presumably upon the assumption that the professional errors and omissions policy would provide this coverage.
The insured had also purchased a separate professional errors and omissions policy. This policy specifically excluded losses arising from property damage and/or bodily injury.
The loss, after investigation and not disputed by the insured, was deemed to have resulted from a software failure. It was therefore excluded by both policies and, as a result of this event, the insured ceased business.
This situation is very easily avoided through the CSIA Insurance Program, available to all members. It includes a combined general and professional liability policy. The coverage includes available endorsements that further extend the broad coverage exclusively to meet the specific needs of CSIA members. For example, in the event that a customer contract requires the use of ISA endorsement, these are included within the policy form at no extra charge.
Further, coverage for breach of contract, cyber liability, payment of withheld fees and pollution is included. I should stress that this coverage is only available to CSIA members via the CSIA-specific Insurance Program.
Finally, the icing on the cake is that the pricing is very competitive. This is made possible by the premium volume and our excellent loss record.
To conclude, our program was founded upon the desire of members to find insurance carriers who understand their business and therefore provide the appropriate coverage at appropriate premiums. We have succeeded in achieving this, and I encourage you to consider the program as an option to help you further execute best practices in your business.
For further information on all aspects of our insurance programs, please contact me, Paul Barnard, CSIA insurance program manager at paulbarnard@csia-insurance.com or 610-507-6595.