Frequently Asked Questions


1. What is professional liability coverage?
Professional Liability insurance protects you and your company should your clients find you negligent in the performance of or failure to provide technology services. This might include coverage for computer software, system and network design, sale of hardware, installation, and system failure.

2. Is there a difference between professional liability and errors and omissions?
No, the two terms are synonymous.

3. What is claims made?
Most professional liability policies are written on a claims-made basis.

Claims-made means the incident that led to the claim must have happened on or after the effective date of a policy (which could include a period of time prior to the policy inception date) and the claim must be first made and reported while the policy is in force. It is this second requirement, the making of claims while the policy is in force, that differentiates claims-made policies from other types of policies you may purchase. The requirement that a claim be made and reported during a period that the policy is in force necessitates the maintenance of continuous coverage once established. If a claims-made policy is not in force when a claim is made, no coverage will be available. By maintaining continuous coverage, you ensure that services performed under previous policies' periods will be covered should a claim be made and reported.

4. What is General Liability?
General Liability covers your company's legal responsibility for the harm it may cause to others. This includes bodily injury, property damage or loss, personal injury which includes slander or libel, and advertising injury. General Liability also covers the cost of your legal defense. Note that General Liability does not cover loss due to your professional errors or negligence, which is normally covered by Errors and Omissions insurance.

5. What is Umbrella Coverage?
Umbrella coverage provides additional amounts of insurance over other existing (underlying) liability coverages. Typically, umbrella policies go over your Automobile Liability, General Liability and Employer's Liability coverages. When the liability limits of existing policies are exhausted, additional coverage is provided by an umbrella policy.

6. How do I insure my home business?
TechShield finds that a business insurance policy combined with errors and omissions is the best way to insure your home-based business. Unless you have a special rider on your homeowners policy, your business property and general liability are not covered. In most cases, a businessowners policy will be the best solution.

7. Are independent contractors covered?
Yes, the work performed by an independent contractor working under your direction would be covered by your businessowners and/or errors & omissions policy. Coverage is not provided for the contractor, who should have his or her own insurance.

8. Can you help me fulfill my contractual obligations?
TechShield can build an insurance solution tailored to meet your contractual obligations. When you request a quote, please include the contract language so we can provide you with the most appropriate coverage. 

9. What is Cyber Liability Insurance?
In our opinion, Cyber Liability Insurance is synonymous with Network Risk Insurance.

10. What is Network Risk Insurance?
Network Risk Insurance is synonymous with Cyber Liability Insurance. It covers a number of technology related exposures that affect both technology and professional firms. Network Risk insurance can be customized to your needs with coverages that include Network Security Liability insurance, Technology Errors and Omissions, Internet Services Errors and Omissions, and Technology/Internet Media Liability.

Companies can have different levels of Network Risk exposure depending on the operations conducted by the organization. A professional firm such as a law firm may only have Network Security and Internet Media exposures. A large information technology firm may have a number of exposures and require Network Security Liability, Technology E&O, Internet Services E&O, and Internet Media Liability.

11. Who is TechShield?
TechShield is a leading provider of technology and network risk insurance solutions. TechShield is positioned to provide comprehensive insurance products and risk management services to companies that use network systems, electronic communications and Web sites.

If technology fails, companies can face lawsuits. TechShield was created to provide security, peace of mind, and the insurance solutions needed by companies operating in a changing environment. Many companies are unaware that their current technology and business insurance polices inadequately cover them for all of their network risk liabilities. Many insurance agents and brokers do not fully understand the complexities either. TechShield was established to fill this gap and provide superior risk management services for today's businesses.

12. Who owns TechShield?
TechShield is a division of Aon Affinity Insurance Services, a leading provider of professional liability insurance programs, and a subsidiary of Aon Corporation. Aon Corporation is a Fortune 500 Company.

13. Which insurance company is underwriting the coverage?
TechShield uses a select group of carriers with strong financial ratings, that have an A.M. Best Rating of A (Excellent) or better.

14. What is the typical limit of liability?
A limit of $1 million is usually considered the minimum for a small business today. Limits of $5 million and $10 million are not uncommon. Larger businesses carry much more. For most businesses, the selection of liability insurance limits is based upon affordability, availability, and any potential contractual obligations.