General Liability Insurance

[codemaker87]

I'm a software developer, computer consultant-type businessman. My business is set up as a Sole Proprietor.

I noticed (with some alarm!) that my Commercial General Liability insurance which covers bodily injury and property damage has an exclusion for "bodily injury, property damage, ... arising out of the rendering of...computer consulting or computer programming services, advice or instruction...". I nearly fainted when I read this.

I found some advice suggesting that I needed *Comprehensive* General Liability (instead of Commercial) but the sample Comprehensive policy I found had the exact same exclusion for the types of services I sell.

My insurance agent has suggested I need Professional Liability Insurance (more expensive, of course) but it doesn't cover Bodily Injury or Property Damage.

My agent has also said that the CGL exclusion does not exclude *all* on site liability, just any "arising" out of my professional work. Believe it or not, when I ask for clarification, they refer to court decisions. Can you imagine me quoting court cases to a claims rep?

I am mostly concerned with events that might take place on a customer's work site. (I work out of a home office, and customers never come to my home.)

So, my questions are:
1) How can I determine what type of insurance I need?
2) If my policy excludes anything ...arising..." out of the work I do, then what does that leave?

Thanks in advance for any advice.

What is the name of your state? North CarolinaWhat is the name of your state?

[tranquility]

1) How can I determine what type of insurance I need?

You read the policies or you ask the agent.

[InsAgentSF]

Hi Codemaker

I understand your confusion, however i agree with your agent. To properly protect your business, you need Errors & Omission. Now, I don't know what ISO form your carrier is using, I assume it's CG 00 01. If it's then you should be covered for Bodily Injury and Property Damage. Insurance company wants to exclude any possibility of Errors & Omission claims and that's why they amended your policy that way. I hope this information helps.

[WonderingMother]

Your insurance agent should be able to hook you up with a carrier that specializes in the coverage for technology. If not, then you want to look for a new agent. There are carriers that have this type of coverage.