Good Afternoon,
We are working to define what our corporate minimum insurance requirements are for the different types of engagements. This is easier said than done. Of course, each specific engagement will need to be evaluated to find out if the $ levels of insurance coverage provided by the vendor is sufficient to mitigate the risk based on the impact of an event during the engagement.
This will mainly apply to Third Party Administrators and Business Process Outsourcing vendors when there are multiple types of required insurance. Simpler engagements such as office furniture moving, electricians, etc., start with a COLI and not too much more.
Our legal and insurance depts have proposed the following should be the minimum types to be carried by TPA's and BPO's:
- Errors & Omissions
- Cyber Insurance
- Fidelity Coverage for Crime of Employee Dishonesty
- Umbrella Policy
The other types that would be nice to have based on the engagement is:
- Commercial General Liability and/or Auto Liability
- Commercial Property Coverage
- Professional Indemnity/Liability Coverage
- Workers Compensation / Employer's Liability
- Bond Third Party Admin
- Fund Transfer & Theft of Funds
- Intellectual Property Insurance
As to the minimum $ amount for each type to then be accepted or increased based on the specific engagement, that is yet to be determined.
Would any of you be willing to share what your company has laid out based on the engagement being done?
Thank you for sharing,
Jeff