Small Business Program (E&O/GL/BOP) – Claims Examples

Professional Liability (PL) Claims Examples:

• Protection, even if you haven’t made a mistake

Although it may not be your client’s fault, their customer has a different view about the scope of work regarding their new invoicing system. They allege the system lacks the functionality required. Being sued for a misunderstanding like this is common. Luckily, the Hiscox professional liability insurance coverage will defend you against any claim and pay any damages you are liable for, up to the policy limits.

• Copyright infringement

Your client is a marketing consultant creating a new advertising campaign for a customer. By accident, you use a trademark similar to an unknown business’s. Although done unknowingly, you infringed the intellectual property rights of that other business and chances are you may be sued. If necessary, Hiscox professional liability insurance coverage will appoint an attorney to defend your client, and will pay related damages, up to the policy limits.

• Negligent acts

Your client is an IT or technology consultant. They are installing software changes for a customer when a virus enables hackers to access their customer database file because your client disabled the firewall before making the installation. Your client may be sued. If necessary, Hiscox professional liability insurance coverage will appoint an attorney to defend your client, and will pay related damages, up to the policy limits.

General Liability (GL) Claims Examples:

• Bodily injury

Your client’s customer trips and falls over your computer bag and your client is held legally liable for the injury. Hiscox GL covers the related claim and medical expenses up to the respective limits of liability as well as legal cost to defend such claims.

• Damage to third party property and data loss

Your client spills coffee on their customer’s server causing damage and loss of the data on the server. Hiscox GL will cover the subsequent claim up to your limits of liability.

• Personal injury

Your client’s employee is at lunch. He talks about one of your client’s customers in a false and unflattering way to the owner of the sandwich shop. It turns out the sandwich shop owner is related to your client’s customer. Your client’s customer finds out and sues for slander. Hiscox will cover the subsequent claim, up to the limits of liability, and pay for an attorney to defend your client, if necessary.