Brief Coverage Explanations:

• Owned Automobiles - Covers liability rising out of the ownership, maintenance or use of automobiles.

• Hired Automobiles - Covers liability for the use of hired automobiles in your business.

• Non-Owned Automobiles - Covers liability for the use of non-owned automobiles in your business. An example would be an employee using his/her own car on an errand for you.

• Uninsured Motorists - Protects insureds who are not contributorily negligent against bodily injury caused by negligent uninsured motorists.

• Comprehensive - Pays for damage to or the loss of automobiles from perils other than collision. A deductible applies.

• Collision - Pays for damage to or the loss of automobiles from upset or collision with another object. A deductible applies.

BOILER AND MACHINERY COVERAGE

This form of insurance provides important mechanical breakdown coverage generally not available under any other insurance policy. A Boiler and Machinery policy can protect an insured against the effects of catastrophic property loss, such as steam boiler explosion or an expensive breakdown of machinery and equipment.

While repairs are being made, valuable time and profits are lost. Business Interruption coverage protects against this. Often Extra Expense coverage is required to keep the business in operation regardless of cost. Consequential Damage and Refrigeration Interruption insurance protect against spoilage as the result of a breakdown. Many times these business interruptions, extra expense and spoilage losses can be much more extensive than the damage to the equipment itself.

Equally important is the very valuable inspection service that Boiler and Machinery insurance can provide. Not only does this service satisfy most jurisdictional inspection requirements, but it also can benefit the insured by providing sound loss control recommendations that can help assure efficient operation and longer equipment life.

It is our opinion that virtually every commercial business has some type of Boiler and Machinery insurance exposure. Keep in mind that mechanical breakdown coverage encompasses much more than just boilers and pressure vessels. It also can include refrigeration equipment, air conditioning equipment, various types of piping, turbines, engines, pumps, compressors, blowers, gearing, shafting, electric motors, generators, transformers and assorted other types of mechanical and electrical equipment. In fact, many policies are written for insureds who do not own or operate boilers or pressure vessels, but yet have sizable mechanical and electrical exposures.

BUILDER'S RISK

Indemnifies for loss of or damage to a building under construction. Insurance is normally written for a specified amount on the building and applies only in the course of construction. Coverage customarily includes fire and extended coverage and vandalism and malicious mischief. Builders risk coverage can be extended to a "special" form as well. The builders risk policy also may include coverage for items in transit to the construction site (up to a certain percentage of value) and items stored at the site.

BUSINESS OWNERS POLICY (BOP)

A unique insurance policy that combines or packages Property, Liability, Automobile, and Umbrella coverages with enhanced coverages for special types of small business.

COMPLETED OPERATIONS LIABILITY COVERAGE

This form of liability insurance provides coverage for bodily injury and property damage rising from completed or abandoned operations, provided the incident occurs away from premises owned or rented by the insured.

Operations are deemed completed at the earliest of the following items:

• When all operations to be performed by or on behalf of the insured under contract have been completed.

• When all operations to be performed by or on behalf of the insured at the site of the operations have been completed.

• When the portion of work out of which injury or damage rises has been put to its intended use by a party other than the contractor or subcontractor.

COMMERCIAL GENERAL LIABILITY COVERAGE

Under this form of insurance and regarding a covered occurrence, the company will pay all sums the insured becomes legally obligated to pay as damages due to:

• Bodily Injury (Coverage A)

• Property Damage (Coverage B)

The insurance company has the right to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of suit are groundless, false or fraudulent, and to make such investigation and settlement of any claim or suit as it deems expedient. However, the company is not obligated to pay any claim or judgment or to defend any suit after applicable limit of the company's liability has been exhausted by payments of judgments or settlements.

CONTRACTUAL LIABILITY COVERAGE

It is common in construction and other agreements (written or oral) for one party to "assume" the liability of another. This is sometimes referred to as a "hold harmless" agreement. The extent to which one holds another harmless varies from contract to contract, job to job, etc.

To assume the liability of another, regardless of extent, is a voluntary undertaking that increases your exposure to loss. A standard Commercial General Liability policy does cover this additional exposure subject to certain exclusions.

CRIME INSURANCE

Employee dishonesty coverage protects an employer from financial loss due to the fraudulent activities of one or more employees. The coverage includes protection for loss of money, securities, and other property of the insured. The following coverages can be added to the Crime policy for an additional premium:

• Computer fraud

• Counterfeit currency fraud

• Credit card fraud

• Electronics funds transfer protection

• Extortion

• Forgery or alteration coverage

• Kidnap, ransom and extortion insurance

• Premises burglary

• Robbery and safe burglary

• Securities deposited with others

• Theft, disappearance or destruction

CYBER LIABILITY INSURANCE

Cyber Liability addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. Cyber Liability Insurance coverage offers cutting edge protection for exposures arising out of Internet communications.

DIFFERENCE IN CONDITIONS (DIC) COVERAGE

DIC insurance provides coverage designed to close specific gaps in standard insurance. It allows coverage to be customized to extend to such exposures as water damage, flood, collapse, earthquake, landslide, etc. DIC coverage may be provided by means of a separate insurance policy or it may be added by endorsement to the basic policy.

DIRECTORS AND OFFICERS LIABILITY

Directors and Officers Liability Insurance is insurance payable to the directors and officers of a company, or to the corporation itself, to cover damages or defense costs in the event they are sued for wrongful acts while they were with that company.

In today's litigious society, most companies recognize the need for D&O liability coverage. These are the facts:

• Even private and nonprofit organizations are not immune from costly litigation.

• Employment related suits for such things as harassment and wrongful termination are at an all-time high, especially since enactment of the Civil Rights Act of 1991 and the Americans With Disabilities Act of 1992.

• Directors and officers are subject to the duties of diligence, obedience, and loyalty and can be sued for negligence in the performance of those duties.

• A claim could threaten the personal assets of directors, officers, and trustees.

• The financial burden of defending a D&O suit can drain an organization's badly needed resources.

 Who Sues Directors and Officers?

Almost any day to day decision or action by anyone in the organization can trigger a lawsuit. Of all the lawsuits brought against private and nonprofit organizations, more than 50% involve employees. Even with the most diligent efforts to prevent employment disputes, the following claims can and are often alleged against organizations:

• Discrimination due to race, sex, age, national origin, religion, disability, or sexual orientation

• Wrongful termination

• Sexual harassment

• Promotions and compensation

• Interference with employment contract

• Hiring decisions

• Conflicts of interest

• Libel, slander, and defamation of character

• Failure to supervise employees

• Invasion of privacy

• Copyright infringement, misrepresentation of ideas,  and unauthorized use of logos.

• Donors who feel that their contributions have not been used to further the expressed aim of the organization.

• Board members who disagree with a majority decision on the use of funds.

• Beneficiaries who feel they are entitled to more than they received.

State attorneys general who institute legal proceedings against the board for issues such as mismanagement of funds and antitrust violations

EARNINGS (BUSINESS INTERRUPTION) COVERAGE

This form of insurance provides loss of income coverage (i.e., "disability income") for your business by replacing your operating income during the period when damage to the premises or other property prevents income from being earned.

It is by means of your operating income that your business meets its expenses of payroll, light, heat, advertising, telephone service, etc., and from which your profit is derived. Business Interruption coverage is invoked after you suffer a loss that is covered by the terms of your property policy. If, as a result of this property loss, you suffer a business interruption and have to close for several months or operate at a reduced pace your earnings will cease or diminish.

For the purpose of this insurance coverage, "earnings" are defined as the actual loss sustained by the insured as a direct result of business interruption necessitated by damage or destruction of real or personal property. The damage or loss must be caused by the insured perils. Furthermore, "business income" is defined as the sum of total net profit, payroll expense, taxes, interest, rents, and all other operating expenses earned by the business.

The amount of coverage your Earnings insurance provides is established on the basis of either amount of insurance or actual loss sustained for each 30-day period of necessary business interruption caused by damage or loss from covered perils. There are several ways to set up Business Interruption depending upon your particular business. Monthly limitations, coinsurance, maximum time period to be paid, etc.

In addition to Earnings insurance, it is also advisable to carry Extra Expense insurance (see separate coverage explanation).

Contingent Business Interruption provides similar benefits as described above in the event that one of your key suppliers or customers suffers a loss (that is covered under the terms of your property policy) and is unable to conduct business.

ELECTRONIC DATA PROCESSING (EDP) COVERAGE

A Standard property insurance policy leaves something to be desired in addressing special EDP-related exposures. Electronic data processing equipment and its software is particularly susceptible to damage from electrical or magnetic disturbance and changes in temperature or humidity—perils which are excluded in a standard "special" perils property policy. Except for prepackaged software programs, which are typically covered on an actual cash value basis, coverage for programs and data in a standard property policy is essentially limited to replacement with blank tapes or diskettes plus transcribing expense. Finally business interruption coverage in connection with damaged EDP Media (not equipment) is limited to 60 days from the date of loss or the time when the other damaged property is repaired, whichever is longer. Therefore, if the building repairs are complete, but normal operations cannot resume because replacement computer programs, data or media are not readily available, an uninsured business interruption loss may result.

The best way to resolve these coverage inadequacies for EDP exposures is to buy a special EDP policy. Typically, EDP policies provide "special" peril coverage similar to that provided by "special" property forms, plus coverage for all electrical and magnetic damage, mechanical breakdown and often temperature and humidity changes as well. Some insurers include these perils in the basic form, while others make them available by endorsement for an additional premium. Usually these broader coverages are subject to a higher deductible as well. Valuation can be on either a replacement cost or actual cash value basis, and coverage may be available on a blanket as well as a scheduled basis. Media coverage includes the cost to reconstruct software developed in-house (subject to the limit of liability selected for the coverage), if necessary.

An EDP policy will respond appropriately to extra expense or income loss from the loss of EDP equipment, programs and data, provided that these coverage options in the policy have been elected and adequate limits of liability have been established.

ELECTRONIC ERRORS & OMISSIONS LIABILITY

Broad coverage for claims arising out of the content of matter, including defamation; disparagement or harm to character, reputation or feeling; product disparagement; invasion or infringement of or interference with the right of privacy or publicity; plagiarism or misappropriation of information or ideas; piracy; infringement of copyright; infringement of title, slogan, trademark, trade name, trade dress, service mark or service name; unfair competition; and negligent error or misstatement.

Example 1: Data processing company's software program malfunctioned, causing several million catalogs to be sent to the wrong addresses. Retailer sued for $1,000,000 in losses, including lost catalog sales, lost profits from reduced catalog sales, and loss of goodwill with customers.

Example 2: Computer consultant was sued for copyright infringement for duplicating and installing computer programs on his customer's machines.

Example 3: Software developer sued when its corporate records software failed, causing delay in preparing annual reports electronically. The plaintiff sued for $1,500,000 in actual and consequential damages due to the delay and money spent to alter its hardware to make the software work.

Example 4: BBS operator sued for copyright and trademark infringement due to illegal copies of plaintiff's video games being available in the BBS.

Example 5: BBS operator sued for copyright infringement due to subscribers' uploading and downloading recordings of copyrighted songs. 

Example 6: Data processing company sued for negligently failing to produce and deliver timely and accurate bills to its customers and failing to correct billing errors.

EMPLOYEE BENEFITS PLAN LIABILITY COVERAGE

Protects the insured employer against claims by employees or former employees resulting from negligent acts or omissions in the administration of the insured's employee benefits programs.

The term "employee benefits programs" is defined to include group life insurance and group accident and/or health insurance; profit sharing plans; employee stock subscription plans; and Workers compensation, unemployment insurance, social security benefits, disability benefits, etc.

Coverage is intended to extend to the "administration" of these plans, including counseling employees, interpreting employee benefits programs, handling records, enrolling/terminating/canceling employees in specified plans on a timely basis, etc.

EMPLOYEE DISHONESTY COVERAGE

Employee dishonesty coverage protects an employer from financial loss due to the fraudulent activities of one or more employees. The coverage includes protection for loss of money, securities, and other property of the insured. Some scheduled policies are still available, but the majority are written on a blanket basis. This provides coverage for all employees, subject to the policy definitions. The limit of liability is "per loss" and is applied on an "occurrence" basis. All acts involving the same employee or group of employees is considered one occurrence.

EMPLOYMENT PRACTICES LIABILITY COVERAGE

Protects the corporation, directors and officers and employees for claims resulting from wrongful termination, discrimination, sexual harassment, wrongful discipline and failure to employ or promote.

ERRORS & OMISSIONS

Coverage for liability resulting from errors or omissions in the performance of professional duties that are often excluded from the General Liability policy. Applicable as a general rule to professional business activities such as banking, accounting, law, insurance and real estate.

FIDELITY BOND

A bond that will reimburse an employer the insured for loss sustained by firm because of any dishonest act by an employee covered by the bond.  Blanket fidelity bonds cover groups of employees.

FIDUCIARY LIABILITY COVERAGE

Fiduciary Liability Insurance pays, on behalf of the insured, the legal liability arising from claims for alleged failure to prudently act within the meaning of the Pension Reform Act of 1974. “Insured” is variously defined as a trust or employee benefit plan, any trustee, officer or employee of the trust or employee benefit plan, employer who is sole sponsor of a plan and any other individual or organization designated as a fiduciary. Group life and medical expense plans, as well as pension and retirement plans, are within the scope of the law.

Individual fiduciaries, the sponsor organization and the plan can all be held (personally) liable under the Employees Retirement Income Security Act of 1974 (ERISA).  Are you and your company at risk? Consider these fiduciary liability loss scenarios:

1. Failure to adequately inform participants:

Department of Labor - The U.S. Department of Labor sued the individual plan administrator, the 401 (k) plan and the sponsor organization. They allegedly failed to inform employees when they switched guaranteed income contract (GIC) companies from ABC Life Insurance Company to XYZ Life Insurance Company, and had misled participants by continuing to use ABC Life Insurance Company's enrollment forms.

Indemnity: $1,000,000

2. ESOP:

Class action - Excluded employees formed a class action and sued individual plan fiduciaries, the plan and the sponsor organization to recover forfeited wages, and to gain the ability to participate in the sponsor organization's Employee Stock Ownership Plan (ESOP). The financially troubled organization had negotiated wage reductions with its employees in exchange for the establishment of an ESOP. However, when the ESOP was finally established, the effective date of the plan excluded former employees and those who had been promoted to management since the resolution of the wage negotiations. After several years, the parties reached a settlement.

Defense costs: $535,000

3. Miscalculation of benefits:

Class action - Approximately 10,000 current and former employees formed a class action and sued the individual plan administrator and the sponsor organization for miscalculating their pension benefits. For years, the sponsor organization had used estimates of social security, which ultimately proved to be inaccurate. After two years, the sponsor organization settled with its employees for approximately $70,000,000 in benefits and administrative costs.

Indemnity: $1,160,000

Defense costs: $1,850,000

4. Error in administration of plan:

Single plaintiff - A retired employee sued the plan administrator and the pension plan alleging an error in administration of the plan and a miscalculation of plan benefits. The employee had announced plans to retire and requested in writing a pension calculation. The plan administrator took over 45 days to value the plan assets. During this time there was a substantial drop in the stock market (Black Monday), which adversely affected the value of the employee's retirement funds.

Indemnity: $80,000

5. Liquidated ESOP:

Class action - Former employees formed a class action and sued the directors, officers, the Employee Stock Ownership Plan (ESOP) trustee and the sponsor organization. While in financial difficulty, the sponsor organization had bargained for a 15% wage reduction and promised in return to establish an ESOP. Shares acquired by the ESOP were valued at $10 per share, while the wage reductions were valued at $44 per share. When the employer sold the company, the acquirer liquidated the ESOP at $2 per share. Employees argued their former employer misrepresented the value of ESOP shares at the time of wage reduction, and the trustee gave too much consideration per share when the ESOP was first established. This allegedly allowed the acquirer to purchase the shares for an inadequate amount. It took nine years to resolve this case.

Defense costs: $1,800,000

6. Miscalculation of benefits:

Class action - Current and retired female employees formed a class action and sued the plan administrator, the plan and the sponsor organization. They alleged that the defendants failed to account for maternity leave when calculating time in service for pension calculations.

Indemnity: $1,875,000;  Defense costs: $680,000

7. Error in administration of benefits:

Single plaintiff - The spouse of a plan participant sued the plan administrator and the sponsor organization for the spousal pension rights. The plaintiff alleged that the plan participant forged the signature on the spousal release form, which the plan administrator had notarized, releasing the spouse's retirement funds to the plan participant.

Indemnity: $400,000

8. Violated terms of the trust agreement:

Class action - Union and non-union employees who participated in a 401(k) plan formed a class action and sued the investment committee, the plan administrator, the plan and the sponsor organization. They alleged that the $120,000,000 investments in ABC Life Insurance Company GICs were imprudent because of the company's extensive junk bonds holdings. They further alleged the investment violated the terms of the master trust agreement, which authorized GIC investments underwritten by companies doing business in Massachusetts and Connecticut. ABC Life was not authorized to do business in either state and was eventually placed in receivership. It took three years to settle the case.

Indemnity: $13,000,000; Defense costs: $770,000

GENERAL LIABILITY

This policy will pay on behalf of the Insured amounts the Insured becomes legally liable to pay due to bodily injury, property damage or personal injury to third parties resulting from the Insured's premises liability, contractual liability, products liability and personal or advertising liability. Product Liability may be covered under a separate policy considering the nature of the product. Coverage for Employee Benefits Liability can also be endorsed.

INLAND MARINE COVERAGE

Inland marine insurance indemnifies loss to moving or moveable property and is an outgrowth of ocean marine insurance. Historically, ocean marine insurance held the transporter responsible for property loss before, during, and after the completion of the voyage. In the 1800's, the non-ocean portion of the journey grew as cargoes were transferred to barge, etc., and the term "inland marine" was coined. Inland marine policies became known as "floaters" since the property to which coverage was originally extended was essentially "floating."

INTERNATIONAL INSURANCE COVERAGES/EXPOSURES

Foreign Coverage is needed by companies that conduct business overseas. This includes importers and exporters. To qualify, you must be a U.S. commercial business selling, traveling or consulting overseas.

Examples of Overseas exposures:

Export/Import

• Sales overseas

• Exhibitions or trade shows

• Overseas Licensing

• Overseas Salesmen

• One source of products

• Transit or shipments

Sell Services Overseas Contracting services

• Consulting services

Manufacturing Abroad

• Overseas facilities

A single policy is all that is needed for all coverages. When purchasing a policy, at least two of the coverages available must be included. A list and brief explanation of these coverages follows:

Premises & Product Liability

This is broad coverage, protecting spouses, employees and vendors. It also covers newly acquired organizations for 90 days. This provides for defense, settlement and investigation into suits involving bodily injury, property damage, personal injury and advertising injury. Suit must be brought outside the United States and Canada.

Automobile Liability

Covers for owned, hired and borrowed cars when overseas. Admitted Auto liability insurance carriers overseas have very limited coverages. This coverage is broader and provides greater limits that are stated in familiar language. This provides primary and excess auto liability limits. The renter should adhere to local laws regarding the purchase of locally admitted automobile insurance.

Workers Compensation and Employers Liability

Unless coverage is mandated by a Federal statute such as the Defense Base Act, International Workers Compensation insurance is a voluntary but necessary purchase. This is intended to cover staff traveling and permanently working overseas. Although these employees may be covered by the domestic workers compensation coverages, they may not be covered in whole while working in a foreign country. The foreign worker's compensation endorsement is not available in New Jersey. Under the International Policy, coverages:

• Are primary

• Are 24-hours per day when traveling abroad

• Do not exclude terrorism, civil war or war

• Provide 24-hour endemic disease coverage

• Provide worldwide Employer Liability protection

• Provide repatriation expense

Property including Transit

This covers inventory and samples or equipment in the possession of a salesperson either in transit to or within the foreign country. Ocean marine will not cover these items while either in transit or when on exhibition at trade shows. Business personal property and real property coverages are also available.

Confiscation and Civil War

Anyone who has goods abroad runs the risk of having them confiscated by foreign governments in certain situations or damaged/destroyed in a civil war. This coverage covers the insured goods that are being stored, exhibited or transported with foreign countries. The insured will be covered against direct physical loss of his goods.

Kidnap and Ransom

Media reports of the kidnapping of businessmen traveling or working abroad underscore the importance of having adequate insurance to meet possible ransom demands. This coverage provides for expenses incurred in negotiating the release of hostage or in making payments demanded in other types of extortion cases.

Crime

The risk of employee theft, loss of money and securities on foreign premises or in transit abroad and depositors forgery exists. Crime coverage protects you against these exposures. It also allows you to offer your inventory records and physical counts to support the amount of loss claimed when there has been a loss through employee theft.

Business Interruption

The package can protect against loss through loss of foreign royalties coverage. This coverage protects against the second contingency through loss of income coverage. This also protects you against the extra expenses you incur in continuing your business after suffering physical loss or damage to his own property. You can also be protected for contingent business income from physical loss or damage to your supplier's property.

Listed below are examples of claims that have occurred during overseas travel:

Premises Liability: A U.S. businessman, while staying in a hotel in China, negligently caused a fire while smoking in bed. The fire resulted in the death of ten individuals and extensive hotel damage. The U.S. businessman was brought to trial in China on both criminal and civil charges. After a lengthy and costly trial, he was sentenced to 18 months in prison and was ordered to pay $52,000 in damages.

If the U.S. businessman had had an International General Liability policy, any bail bonds, civil court costs and resulting civil penalties may have been paid under this coverage. Domestic CGL policies would not have responded because of territorial limitations on the policy.

Product Liability: A U.S. manufacturer of acne cream products had worldwide sales. A woman in South America suffered eye irritation, the cause of which was traced to the U.S. manufacturer's product.

The claim was settled before it went to trial. However, had it resulted in a suit, the policy would have paid the defense costs and any resulting judgments against the manufacturer.

Difference in Limits and Conditions: An insured, while on business in Korea, rented an automobile and accidentally struck and seriously injured a pedestrian.

The local liability policy on the rented vehicle provided $50,000 in limits. The non-owned/hired automobile liability portion of the policy paid damages that exceeded $50,000. Under the supplementary coverages, the company also paid for the insured's bail bond. There was no coverage provided under the local policy.

Endemic Disease: An individual with Foreign Voluntary Workers Compensation coverage contracted malaria while installing satellite dishes in Africa. Originally, the insured was incorrectly diagnosed and treated for hepatitis. Eventually, a correct diagnosis of malaria was reached and the disease was cured.

Both hepatitis and malaria are considered endemic diseases; that is, they are common to particular regions of the world. The state of New Jersey offers coverage for occupational disease, but may not cover endemic disease. The company paid this claim, as the Exporter's Package is designed to cover endemic disease. The company also paid for medical expenses until the insured was cured. Domestic Workers Compensation probably would not have responded to such a claim.

Protection of Experience Modifier: An insured temporarily in Mexico on business accidentally shut his finger in a taxi cab door, resulting in the finger being severed.

The insured's medical expenses were paid for by the company through the Foreign Voluntary Workers Compensation coverage. In so doing, The insured avoided filing the claim through the state Workers Compensation Board, not knowing if the claim would be approved or when the decision would be made final. In addition, the insured prevented the claim from negatively affecting their domestic Workers compensation experience and, hence, protected their domestic experience modification.

24-Hour Coverage: An individual, while temporarily working in Haiti, was killed in a late night auto accident.

The widow of the deceased filed a Worker's Compensation claim against the State of Florida, which was denied since the accident occurred after business hours, and the employee was deemed not to be within the scope of his employment. If this individual had had Foreign Voluntary Workers Compensation coverage, full death benefits would have been paid to the widow by the company.

The following are examples of what can happen to U.S. companies when liability suits are brought overseas and their domestic coverages do not respond:

1. The Company's assets can be impounded in the form of:

• Accounts Receivable

• Demonstration Floaters

• Salesmen's Samples

• Work in Process

2. A manufacturer can be denied access to the market and therefore, all his future earnings.

3. Distributors may be forced to pay judgments:

• In turn a suit might be brought in the U.S. against the U.S. manufacturer by the distributor.

• Distributors can use their contacts to alienate the U.S. corporation with the local market (within the European common market).

4. The U.S. Government may be asked to enforce the principle of law known as Comity thereby forcing the U.S. corporation to respond to a foreign judgment.

International Insurance Coverages/Exposures

 NOTE: Temporary travel implies a period not longer than six months.

OWNERS OR CONTRACTORS PROTECTIVE LIABILITY COVERAGE

This insurance coverage provides for payment on behalf of the insured of all damages the insured becomes legally obligated to pay due to bodily injury or property damage caused by an occurrence rising from the following:

• Operations performed for the named insured by independent contractors.

• Acts or omissions of the named insured in connection with his/her general supervision of such operations. This does not include maintenance and repair at premises owned by or rented to the named insured, or structural alterations at such premises that do not involve changing the size of or moving buildings or other structures.

PERSONAL INJURY LIABILITY COVERAGE

This insurance coverage protects against false arrest, detention or imprisonment, or malicious prosecution; libel, slander, defamation, or violation of right of privacy; and wrongful entry, eviction, or other invasion of right of private occupancy.

POLLUTION LEGAL LIABILITY COVERAGE

Coverages

• Pays on your behalf all sums you are legally obligated to pay as a result of emission, discharge, release, or escape of any contaminants, irritants, or pollutants into or on land, the atmosphere, or any water course or body of water, provided this results in "environmental damage."

• Additionally pays to reimburse your expense for reasonable and necessary cleanup costs incurred in the discharge of a legal obligation validly imposed through governmental action, provided such expense is incurred because of "environmental damage."

• Pays for defense of any claim or suit that is the subject of this insurance.

Coverage Response

"Claims made" coverage response (i.e., responds only to claims first made during the policy period and only for incidents that have occurred after the effective date of this coverage).

Pollution "Environmental damage" is defined in the policy as "the injurious presence in or on land, the atmosphere, or any water course or body of water of solid, liquid, gaseous, or thermal contaminants, irritants, or pollutants."

PRIVACY AND NETWORK SECURITY INSURANCE

Internet Security insurance coverage protects you from losses associated with unauthorized access to or theft of your data or e-business activities, computer viruses, denial of service attacks, as well as alleged unauthorized e-commerce transactions.

PRODUCTS LIABILITY

The liability for bodily injury or property damage incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufactured or the liability incurred by a contractor after he has completed a job as a result of improperly performed work. The latter described part of product liability is called Completed Operations.

PRODUCTS AND COMPLETED OPERATIONS AGGREGATE

Liability arising out of the insured's products or business operations conducted away from the insured's premises once those operations have been completed or abandoned. An aggregate limit in an insurance policy stipulates the most it will pay for all covered losses sustained during a specified period of time, usually one year.

PROPERTY INSURANCE

Property insurance covers your property of every description against loss caused by any covered peril such as fire, windstorm or lightning.  Property policies typically define the covered perils by first insuring all perils then specifically excluding the perils that do not apply.

Business Interruption insurance provides loss of income coverage for your business by replacing your operating income during the period when damage to the premises or other property prevents income from being earned.  Business Interruption coverage is invoked only after you suffer a loss that is covered by the terms of your Property policy.

REPLACEMENT COST COVERAGE

This form of insurance provides coverage on the basis of full replacement cost without deduction for depreciation on any loss sustained, subject to the terms of the co-insurance clause. This coverage applies to both building and contents items as specified on the face of the policy.

No deduction is taken for depreciation in arriving at the proper amount of insurance needed to comply with the co-insurance clause.

UMBRELLA LIABILITY COVERAGE

This type of liability insurance provides excess liability protection. Your business needs this coverage for the following three reasons:

• It provides excess coverage over the "underlying" liability insurance you carry.

• It provides coverage for all other liability exposures, excepting a few specifically excluded exposures. This is subject to a large deductible of $10,000.

• It provides automatic replacement coverage for underlying policies that have been reduced or exhausted by loss.

VALUABLE PAPERS COVERAGE

An "all risk" insurance coverage that covers the cost of research to reconstruct damaged records, as well as the cost of new paper and transcription.

The term "valuable papers" refers to written, printed, or otherwise inscribed documents and records, including books, maps, films, drawings, abstracts, deeds, mortgages, and manuscripts.

WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY

Workers Compensation provides protection to the employer against liability imposed by law to pay benefits to any worker injured in the course of and arising out of employment, without regard to fault or negligence on the employer's part or any other person.

In addition to providing for payment of benefits to covered employees as prescribed by law, Workers compensation insurance provides employer's liability coverage to protect the employer against claims for damages brought by employees or others when the loss is not covered under Workers compensation.

The information contained herein provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. All insurance coverage is subject to the terms, conditions, and exclusions of the applicable individual policies. Marsh cannot provide any assurance that insurance can be obtained for any particular client or for any particular risk.