A certificate of liability insurance is a one page document that verifies the existence of insurance coverage.  The certificate includes the insured party’s name, the insurance company’s name, the policy number, the effective /expiration date, the type of insurance coverage and dollar amount.

With this one piece of paper you can provide extensive details about your insurance policy to anyone.  You may ask yourself “who would need to see my insurance certificate?”  Before agreeing to sign a IT consultant contract your client will ask for proof of insurance.  They demand this when liability and large losses are a concern.  For example in the event of a bodily injury or property damage caused by you while doing work on their behalf or at the client’s site your client will be defended under your policy just as you are.

The following may also be provided on your certificate of liability insurance:

1)      Certificate holder- a certificate holder is anyone who is named in and insured by the insurance policy.  In some cases clients may ask to be named as a certificate holder to ensure that they’ll be notified in the event that your policy is canceled before its expiration date.

2)      Additional Insured- this refers to anyone else besides the policy holder who is covered by an insurance policy.  A certificate of insurance typically includes a list of additionally insured parties, if they exist.  For the purposes of most tech firms, additionally insured parties would include your customer or clients.  People who are “additional insured” can receive coverage benefits if the work you do on their behalf leads to an injury or property claim against them.

Typical Contract Language-“Insurance required will name Client as an additional insured with respect to Client’s insurable interest, will be primary or non-contributory regarding insured damages or expenses, and will be purchased from insurers of sound internationally recognized financial standing.”

Certificates of insurance also include language that indicates that, if an insurance policy is cancelled, any and all certificate holders will be notified.  ‘Certificates of Liability Insurance evidencing the required coverage and limits shall be furnished to Client prior to the commencement of any work hereunder and shall provide that there will be no cancellation or reduction of coverage without thirty (30) days’ prior written notice to Client.”

The certificate of insurance is your key to doing business and a crucial document that you need access to all the time.  With our great certificate department you are one email away form receiving or sending your certificate to clients. Anytime you have a request, our certificate department is here to help.  The one thing your insurance certificate cannot do is grant you any of the policy benefits. You will need to have a copy of your full insurance policy to do so.

Buying a new home can be overwhelming just to think about.  If you have never purchased a home before, here are some steps to better understand what’s involved.

1. Get preapproved for a mortgage. Preapproval determines the size of the loan a bank will lend you.  This will help you figure out the price range of the home you can buy and a down payment amount. It’s also important to have when making an offer on a home. Your bid is stronger by being prequalified. There are a bunch of mortgage calculators you can find online like Bankrate to give you an idea of what your monthly payment would be by inputting an interest rate, down payment and loan amount.
2. Know your credit score. Applying for a mortgage is basically like asking the bank to check all your financial records.  They will obtain a credit report from each of the three major credit bureaus Equifax, Experian and TransUnion.  Even the minor error in a report can change the score.  Make sure that all of your credit card balances are low or paid off and be sure to watch your opening and closing of accounts as they will make the lender suspicions.  These factors contribute to your credit standing and will influence the bank on the rate they offer you.  Banks are trying to determine the amount of financial responsibility you can take on.  They will look at your income, down payment and available funds to determine your monthly payments.
3. Find a house! The next step is to search for a house you enjoy.  Find a real estate agent you can trust to help guide you through this process.  They are experienced in finding you the location, price range and style of house you are looking for.
4. Make an offer. Once you find a suitable home it’s time to make a bid or offer. Some negotiation back and forth may occur but once a price is agreed on a contract can be drawn up.  After the contract is drawn up you are given a time period for attorney review.  During this time you should have the house inspected by an engineer form a home inspection company.  They will make sure the home is up to code and report on any issues they may find.  After the home inspection report is completed a contract date is set. Your attorney will now give a dollar amount that will be held in escrow until closing.  At this point a formal mortgage application is taken out and this is when you will be told how much insurance to take out on the house.
5. Get homeowners insurance. No bank or lending institution will allow you to take a mortgage without it.  Home insurance is a combination of property insurance and liability insurance.  It covers private homes form loss or damage to its contents, loss of use (additional living expenses) or loss to personal possessions of the home owner.   Liability coverage for accidents that may happen at the home or at the hands of the homeowner within the policy territory is also provided.   Homeowners insurance is a term policy set for a fixed period of time, usually 12 months.  Only a person with insurance interest can be named on the insurance policy.  The policy will be for at least 80% of the value of the house.  This is due to the coinsurance clause that all property insurance policies have.  Co-insurance is a penalty imposed on the insured by the carrier for under reporting/declaring/insuring the value of the property. Reach out to a NJ insurance agent to get a good understanding of the specific coverages your (almost) new home might need.

Now that you have qualified for a mortgage, searched for a home, placed a bid, drawn up a contract and obtained an insurance quote you are now ready to become a home owner.  These are just some helpful insights into the process of buying a home that you can use to prepare yourself when it’s time for you to purchase a home.

Keeping your data safe and secure is an important job for every business owner.  Hackers, viruses, and employee error are potential hazards every business must prevent to keep their data secure. You may ask; how can a business protect its data?

First, you need to understand where your business is vulnerable.  Do a security audit and test your entire IT infrastructure.  This includes your computers, networks, and mobile devices.  Once you know some of the spots you need to improve, you can form a data protection strategy.

Employee Error
Hackers and viruses are usually the main focus in a business’s data protection strategy but one of the biggest threats is employee error.  Consultants, partners, and vendors all access your network.  Put a security policy in place so the people who enter your network have specific rules to follow that ensures your data security. For example, mandate that all computers used to connect to your network have security software (firewalls and antivirus software). Have a rule in place that reminds your employee not to exchange security information over the phone and encourage the use of strong secure passwords.  This can help minimize the threat to your data.   Keeping your employees involved will make it a habit to think about data and network security and can also create a team work environment.

Lost, Stolen, or Corrupted Data
Your data can be stolen, corrupted or lost.  These are risks you need to prepare for. One of the main things you can do to keep your business running is to have a back up strategy.  This will ensure that you can recover your data at any time.  Without a back up strategy your data can be lost forever.  Back up your data regularly. Whether it’s hourly, daily, or weekly, it’s really up to you to assess how much data you can afford to lose.  You can use the software already on your computer or there are plenty of third party programs out there to use.  Storing your data offsite can also protect it from any natural disasters that may occur.

Along with backing up your data, it’s a good idea is to encrypt it.  Even if the data is stolen it cannot be used to harm you or your clients. Encrypt individual files, folders or an entire disk.  There are hundreds of methods a variety of ways to keep your data safe. Make sure you invest the time and money in encryption programs and antivirus software.

Cyber Risk Insurance
Now that you have done your research and put together a data protection strategy there is one more thing you can do.  Cyber risk insurance proves that insurance carriers are becoming more sophisticated and in tune with today’s world. Cyber risk protects technology companies like yours. If your system is breached, it can disrupt or even ruin your business.

Cyber risk provides protection to all types of business from inadvertent disclosure and theft of confidential information such as social security, bank account and credit card numbers, and damage to or destruction of computer systems and data form computer viruses, hacking and criminal activity.

Any organization that stores or transmits confidential information or whose operation may be subject to disruption from the failure of technology needs cyber risk insurance.  Cyber risk insurance can especially help information technology companies mitigate their cyber risk.  The cost of this insurance depends on the size of the company, type of industry, amount and type of information stored along with other factors.

Contact a technology insurance expert to learn more.

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Insurance tips for technology companies

In the insurance world knowing what to ask can save you time and effort looking for a policy to protect your business.  A recent article on technology insurance discussed five good questions that IT companies should be asking their insurance carrier or agent.  The information technology world is growing every day and with it, risk. Problems can arise in ways that you can’t even imagine.   The code you write could cause your client a financial loss.  Do you know how to protect yourself from this scenario?  You may think you have the right insurance but without asking the questions, you can be left with gaps in your coverage.

Your company’s international exposure is also something to consider.  In the online world, your software can be downloaded and used anywhere in the world.  Working with an insurance carrier that understands this is crucial.  Make sure they have experience in international commerce and are able to guide you towards the products that will protect you overseas.

Another good point the article brings to our attention is that even though your software is impregnable you can be included in a claim against both you and the hardware manufacturer.   Make sure your insurance is ready for this situation by asking you agent or carrier for a product that will protect you from this type of lawsuit.

Communication is the key to success. Contacting your insurance agent or carrier should be simple with multiple outlets so that you are never left in the dark. When dealing with an insurance company or an independent agent, be sure they have an easy communication process in place.  I always check to make sure I have contact name, phone number, second phone number, email, second email, and a place to go for online support.