UNDERWRITING GUIDELINES FOR TECHNOLOGY OFFICE SEGMENT

Transcription

1 UNDERWRITING GUIDELINES FOR TECHNOLOGY OFFICE SEGMENT Local exceptions to these underwriting guidelines may apply. Please consult with your underwriter or sales executive for details and to discuss risks which exceed the following guidelines. Technology Office Pac SM risks will typically have: Up to $5 million Total Insured Values (Building and Business Personal Property) at each location, Up to $3 million Annual Sales, Up to $1 million Annual Payroll, and Less than six locations. Businesses that exceed any of the above thresholds should be referred to Global Technology. Underwriting Guidelines for Technology Office Pac Business Personal Property and General Liability coverage is required. If applicable and eligible, coverage is required for all owned buildings. One hundred percent insurance-to-value is required. Eligible operations are businesses specifically listed in the Classification section. Years in Business: A minimum of two years in business is preferred for all risks. New ventures may be considered for those businesses where professional/technical degrees or designations are required. Loss Experience: The business must have favorable loss experience for Property and General Liability. For each $10,000 in premium size, favorable loss experience can be generally defined as no more than two claims (Property and General Liability) and no loss greater than $10,000 in the last three years. Prior Carrier: The business must have had continuous insurance coverage for the last three years, with no cancellations by the insurer(s) or non-renewals (for other than market withdrawals or transfers within an insurer company group). Internet: Revenue generated by transactional Web sites must be less than 50 percent of the total revenues. Transactional Web sites are defined as Web sites that allow for the transfer of private consumer/business information in exchange for goods/services or information. Web sites should have system security certification. Property Underwriting Guidelines: No cited violations of fire or life safety codes. Businesses should have adequate protective measures to detect fires and thefts. Daily backups must be performed and stored at an offsite location. Contingency plans must be in place for replacing equipment and relocation to facilities with appropriate services such as Internet connectivity and network wiring. 1

2 All owned buildings should be fully occupied, with no seasonal occupancies. Seasonal is defined as any occupancies open less than 8 months of the year. All tenants must meet underwriting requirements. Please see the appropriate underwriting guidelines based on the tenant occupancies. For both tenants and building owners, the plumbing, HVAC, wiring and roof must have been updated in the past 30 years. Liability Underwriting Guidelines: Please consult with your underwriter if armed security guards are present. Business Income Coverage for Technology Office Pac Business Income and Extra Expense coverage is included for Technology Office Pac. Coverage applies on an Actual Loss Sustained basis for up to 12 consecutive months. Coverage may be written on a policy or location level basis for any dollar limit without the 12 month limitation. Coverages for Technology Office The following applies to all Technology Offices: MP T Amendatory Provisions - Offices is mandatory. It does the following: Adds $25,000 Communication Supply Services Time Element coverage for each described premises, including overhead lines, after a 24-hour waiting period. MP T3 21- Denial of Service Attack - Time Element is mandatory when Business Income and Extra Expense is covered. It provides coverage for Business Income and Extra Expense due to the necessary suspension of electronic commerce computer operations caused by a denial of service attack. Coverage is provided for up to $25,000. MP T Technology Office Endorsement is available as an option (mutually exclusive with Power Pac SM ). CG D XTEND Endorsement is mandatory CG D Exclusion - Intellectual Property is mandatory. CG T Exclusion - Testing or Consulting Error and Omissions is mandatory. CG T5 37- Exclusion - Computer Software Errors and Omissions is mandatory. CG D Web XTEND Endorsement - is not available. *Note: Select s Technology Office segment does not include Technology Errors and Omission (E&O) coverage. Technology E&O coverage is available with a limit up to $5 million through Travelers Global Technology Underwriting Unit. Please contact your Global Technology underwriter if you wish to get a quotation at 888.TEC.XPRS 2

3 Classifications for Technology Office Description Pac Eligible Program Code SIC Commercial Computer Installation, Service or Repair U Services are limited to work on the hardware and supporting software. Much of the work can be conducted on the insured s premises. The insured may make service calls when it is not practical for the customer to take their equipment to the insured s premises. Includes the installation, service and repair of computer systems and equipment, not sold by the insured. Primary customers are commercial or industrial businesses. (Many industrial process applications are ineligible. Please review the Ineligible List) System integrators shall be separately classified and rated as Computer Consultants-Remote Offices. Off premises work must generate less than 50 percent of total revenues. Computer Consultants U The insured s primary service is to provide business management advice with an emphasis on the support and integration of information technology to maximize efficiency and effectiveness. Receipts from the sale of training materials to clients must be no more than 25 percent of total receipts. No software developers or Web site designers. Classification does not apply to any business that operates in a dual capacity as a consultant and operating any other business. Computer Consultants-Remote Offices U Commonly referred to system integrators. These insureds evaluate the customer s information technology needs, recommend technology solutions, and install, connect, configure and maintain the customer s information technology and communication systems. Operations must be limited to 15 or less employees. Receipts from the sale of training materials to clients must be no more than 25 percent of total receipts. No software developers or Web site designers. Classification does not apply to any business that operates in a dual capacity as a consultant and operating any other business. Computer Instruction U Provides training on hardware, software and repair systems for clients. Training may be conducted on the insured s or customers premises. CG T4 90-Abuse or Molestation Exclusion endorsement is mandatory. Data Preparation & Processing U Includes the processing, preparation and storage of the client's data. The work may be done on the insured s or client s premises. Frequently the insured may link with the client through the Internet. No software design. Information Technology Facilities Management U Insured will work on the client s site and maintain their entire information technology and communication system and network. Services will include all equipment, software and security maintenance and database management. These companies are a substitute for the client having to maintain their own information technology staff. 3

4 Description Pac Eligible Program Code SIC Personal Computer Installation, Service or Repair U Includes the installation, service and repair of computer systems and equipment, not sold by the insured. Primary customers are individuals who need help with their personal home computers. Services are limited to work on the hardware and supporting software. Much of the work can be conducted on the insured s premises. The insured may make service calls when it is not practical for the customer to take their equipment to the insured s premises. No software design. Off premises work must generate less than 50 percent of total revenues. Software Developers and Designers-Custom U Applies to businesses providing all aspects of customized software design and development. Services include analyzing the client s business needs and either creating customized software or modifying prepackaged software to satisfy the business needs. Software Developers and Designers-Prepackaged U Applies to businesses providing all aspects of software development. Products are designed for general use with no customization. Work is primarily conducted on the insured s premises. Web-based Services-Applications for General Use U /7379 Web-based services that provide and maintain general business and management software applications. This may include database storage and management. Customers will link through the Internet. This will also include web hosting where the insured hosts clients Web sites from their servers. Customization is minimal. Web-based Services-Applications for Specific Business Use U /7379 Web-based services for specialized and customized applications. The insured will manage their services through their servers and their clients will link through the Internet. Web-based Services-Internet Search and Index Tools U /7379 Applies to businesses providing Internet users means of finding Web sites, documents and images on the World Wide Web. Web site Developers & Designers U /7379 Insured will design and maintain their clients Web sites. Services include designing and developing the content as well as the advertising and hyperlinks. Web site hosting must be classified as Web-based Services-Applications for General Use. 4

5 Ineligible Applications/Operations for Technology Office The following information technology services are higher hazard and may not be written as Technology Office Pac accounts. Ineligible businesses include anyone that develops, designs, services, installs or maintains any type of software or services with an end application in the list below. INELIGIBLE APPLICATIONS/OPERATIONS Amusement parks and devices Emergency response services Environmental controls Internet Service Providers (ISPs) Manufacturing process software/integration Medical equipment (software) applications Military/Defense Department applications/services Modeling Software CAM, CAD, environmental/geophysical simulations Nuclear applications Professional support software medical, legal, engineers and architects (technical information or application software/systems) Petrochemical applications Quality control software/systems Regulatory compliance software/systems Risks that are not developers of technology, but merely use technology or operate their business on the Internet including but not limited to: Banking or credit services Dating/escort services Gambling or gaming Employment or temporary help agencies Music sales or downloads Travel services Digital media (publishing) Auction sites, including group buying or barter sites Satellite or space communications Security software and services (systems and premises including identity recognition) Software with a severe products liability exposure Traffic Control Communications software/applications air, water, land, rail Telecommunication Companies/Service Providers including wireless communication Video/electronic game developers The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford, CT travelers.com This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations The Travelers Companies, Inc. All rights reserved Rev. 5-07