We are wildly excited to announce that Ad Hoc has its own malpractice insurance policy. We know it is a bit odd to be excited about the privilege of paying an additional business expense, but to us it means we’re legit. Because frankly, if an (awesome!) insurer will cover us for professional services, we must be doing something right.
What does it cover?
Our new policy provides coverage for claims made against Ad Hoc for acts, errors, or omissions in professional services. Even though we’re performing projects for other firms, our work is covered under this policy because Ad Hoc is its own entity.
Why is it necessary?
We decided that insurance was a necessary business expense for two main reasons. First, it simplifies the process of working with us. Having our own policy means our outside firms do not necessarily need to adjust their own malpractice policies prior to hiring us.
Secondly, we want to avoid unintentional gaps in coverage. Although most insurers provide a mechanism for covering independent contractors, the level of coverage may vary based on the degree of integration between the contractor and the hiring firm. Because we very clearly work on behalf of Ad Hoc, we are less likely to be extended coverage under another firm’s existing policy--hence our decision to seek a policy of our own. Nonetheless, nothing prevents our hiring firms from notifying their insurance providers of our involvement. Though this may sometimes result in double coverage, that is a better fate than an unintentional gap.
We would like to extend a big thanks to ALPS for being the only insurer to give us the time of day! Please let us know if you have any questions. We are always available by phone or email.