Portal Home > Knowledgebase > Articles Database > E&O Insurance for Resellers
E&O Insurance for Resellers
| Posted by utdream, 11-27-2012, 06:15 PM |
| Hi Folks,
I'm wondering if anyone reading on this forum might have some insight to a situation we're currently experiencing with a development company that currently resells hosting using our servers.
Basically, the story goes that this client is getting a contract from a City, and the city has generic forms that requires any contractors that work with them to have Errors and Omission insurance (also known as E&O Insurance or Professional Insurance). As a hosting company, we naturally have this insurance, but our client does not. So the client contacted us asking if our insurance covered their clients as well, and we told them that no, it doesn't. Our insurance covers the reseller, because they are our client, but the resellers clients only have contracts with the reseller, so we cannot be beholden to someone we don't have a contract with.
So, I recommended to our client that she go talk to an insurance company and ask them about getting Errors and Omissions insurance for herself and her company, and she said that she had and that they would not cover her because she did not own the hosting equipment.
So, my question to this forum is, what can resellers do in this kind of a situation? Do any of you know any insurance agency that will insure a reseller account?
Any insight anyone can provide would be helpful.
Thanks guys.
|
| Posted by SPINIKR-RO, 11-27-2012, 07:32 PM |
| Interesting question.
/subscribed
|
| Posted by shovenose, 11-27-2012, 07:53 PM |
| Yup, I'm interested too.
But I don't have an answer, sorry.
|
| Posted by VMStormVPS Dave G, 12-01-2012, 05:23 PM |
| In our experience, white label resellers are perfectly capable (and legally able) to get various types of insurance, including professional. Ownership of equipment is not a pre-requisite. Lots of consultants are selling rackspace and the like to their clients -- why should there be a double-standard for smaller names in hosting?
If you can't reconcile the above, I would offer to contract the hosting directly to the city and tie the reseller in on the support end (or whatever other value they are adding).
Lots of ways to skin this cat.
Best of luck,
Dave
|
| Posted by jeremyvedder, 12-03-2012, 11:15 AM |
| Any answer to the conundrum? I am very interested to find out how this worked out with the insurance company.
|
Add to Favourites 
Print this Article
Also Read
Jonesolutions (Views: 784)