--- title: "What Insurance Covers FAQ" description: "Answers that match common business risks, from fraud and lawsuits to shutdowns and ransom demands, to the insurance lines that usually respond." canonical: "https://spot.insure/insurance-faq/what-insurance-covers" page-type: "faq-topic" updated-at: "2026-09-25" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/insurance-faq/what-insurance-covers) # What Insurance Covers FAQ Answers that match common business risks, from fraud and lawsuits to shutdowns and ransom demands, to the insurance lines that usually respond. ## What It Covers ### [What Insurance Covers 401k Lawsuits?](https://spot.insure/insurance-faq/what-insurance-covers/401k-lawsuits) Fiduciary liability may cover 401(k) plan-management claims; an ERISA fidelity bond protects plan assets from dishonesty. ### [What Insurance Covers a Missed Professional Deadline?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-missed-deadlines) Professional liability may respond to a client’s claim that a missed deadline in covered services caused financial harm; penalties and claims-made timing can narrow coverage. ### [What Insurance Covers AI Errors and Hallucinations?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-ai-errors) Professional or technology E&O may cover a client’s claim that an AI service caused financial loss; cyber and media policies address different allegations. ### [What Insurance Covers Bad Professional Advice?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-bad-advice) Professional liability may cover a client’s claim that bad advice in a covered service caused financial loss, while intentional conduct and redo costs may be excluded. ### [What Insurance Covers Board Members?](https://spot.insure/insurance-faq/what-insurance-covers/board-members) D&O may cover board members for covered management claims when their board role meets the policy’s insured-capacity definition. ### [What Insurance Covers Breach Of Fiduciary Duty?](https://spot.insure/insurance-faq/what-insurance-covers/breach-of-fiduciary-duty) Fiduciary liability may cover benefit-plan claims; D&O may cover corporate-management claims, subject to each policy’s role and cross-exclusions. ### [What Insurance Covers Business Data Loss?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-data-loss) Cyber insurance may pay to investigate and recover electronic data after a covered incident; some crime forms also cover narrowly defined restoration expenses. ### [What Insurance Covers Business Equipment Off Premises?](https://spot.insure/insurance-faq/what-insurance-covers/business-equipment-off-premises) Inland marine or an off-premises extension may cover business equipment at temporary sites, subject to its schedule, territory, and theft terms. ### [What Insurance Covers Business Shutdowns?](https://spot.insure/insurance-faq/what-insurance-covers/business-shutdowns) Business-interruption coverage may replace defined income and expenses after covered property damage shuts down operations. ### [What Insurance Covers Company Cars?](https://spot.insure/insurance-faq/what-insurance-covers/company-cars) Commercial auto covers liability for covered business vehicles; collision or comprehensive coverage is needed for damage to your own vehicle. ### [What Insurance Covers Computer Fraud?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-computer-fraud) A crime policy’s computer-fraud coverage may pay direct property loss caused by a fraudulent computer transfer; it may not cover an employee tricked into sending money. ### [What Insurance Covers Construction Defects?](https://spot.insure/insurance-faq/what-insurance-covers/construction-defects) Builders risk may exclude the cost to fix defective work while covering separate resulting damage or liability under other policies. ### [What Insurance Covers Construction Materials?](https://spot.insure/insurance-faq/what-insurance-covers/construction-materials) Builders risk may cover project materials at the jobsite and specified storage or transit locations during construction. ### [What Insurance Covers Contractor Mistakes?](https://spot.insure/insurance-faq/what-insurance-covers/contractor-mistakes) Contractors may need general liability for third-party injury or property damage, E&O for service errors, and separate coverage for rework. ### [What Insurance Covers Copyright Infringement?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-copyright-infringement) Media liability or dedicated IP insurance may address copyright claims; general liability is narrower and may cover infringement tied to an advertisement. ### [What Insurance Covers Customer Injuries?](https://spot.insure/insurance-faq/what-insurance-covers/customer-injuries) General liability may cover a customer’s covered bodily-injury claim at your premises or from your operations. ### [What Insurance Covers Cyber Attacks?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-cyber-attacks) Cyber insurance can cover first-party response costs and third-party claims after covered cyber events, but the policy may include one side without the other. ### [What Insurance Covers Damage To Customer Property?](https://spot.insure/insurance-faq/what-insurance-covers/damage-to-customer-property) CGL may cover accidental damage to customer property, but property in your care, custody, or control may be excluded. ### [What Insurance Covers Data Breaches?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-data-breaches) Cyber insurance may cover breach investigation, notification, recovery, and some claims by affected people, depending on the event and policy terms. ### [What Insurance Covers Defamation?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-defamation) General liability personal-and-advertising-injury or media liability may cover some defamation claims, depending on the statement, activity, and exclusions. ### [What Insurance Covers Defective Products?](https://spot.insure/insurance-faq/what-insurance-covers/defective-products) Product liability may cover third-party injury or damage from a defective product; repair and recall costs are separate. ### [What Insurance Covers Directors?](https://spot.insure/insurance-faq/what-insurance-covers/directors) D&O may cover claims against directors for alleged wrongful acts in their insured leadership role. ### [What Insurance Covers Discrimination Claims?](https://spot.insure/insurance-faq/what-insurance-covers/discrimination-claims) EPLI may defend specified workplace discrimination claims, but the claimant, alleged conduct, and policy exclusions must qualify. ### [What Insurance Covers Employee Benefit Claims?](https://spot.insure/insurance-faq/what-insurance-covers/employee-benefit-claims) Fiduciary liability may cover claims over benefit-plan administration; benefits owed to participants may be excluded. ### [What Insurance Covers Employee Benefit Plan Mistakes?](https://spot.insure/insurance-faq/what-insurance-covers/employee-benefit-plan-mistakes) Fiduciary liability may cover wrongful plan-management claims; a narrower employee-benefits extension may cover clerical errors only. ### [What Insurance Covers Employee Lawsuits?](https://spot.insure/insurance-faq/what-insurance-covers/employee-lawsuits) EPLI is designed for covered employment-practices claims, while general liability usually does not cover employee lawsuits. ### [What Insurance Covers Employee Theft and Embezzlement?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-employee-theft) Commercial crime or fidelity coverage may pay a business’s direct loss from employee theft, including some embezzlement, if the policy includes that grant. ### [What Insurance Covers Employees Driving Personal Cars For Work?](https://spot.insure/insurance-faq/what-insurance-covers/employees-driving-personal-cars-for-work) Hired and non-owned auto liability may cover your business’s liability when employees drive personal cars for work. ### [What Insurance Covers Environmental Contamination?](https://spot.insure/insurance-faq/what-insurance-covers/environmental-contamination) Pollution liability may cover specified cleanup costs and third-party claims from contamination, subject to site and known-condition terms. ### [What Insurance Covers Equipment Breakdown?](https://spot.insure/insurance-faq/what-insurance-covers/equipment-breakdown) Equipment-breakdown coverage may cover physical damage from a defined mechanical or electrical accident; wear and gradual deterioration may be excluded. ### [What Insurance Covers Equipment In Transit?](https://spot.insure/insurance-faq/what-insurance-covers/equipment-in-transit) Inland-marine or transit coverage may protect equipment while it moves, if the equipment, route, and limits are covered. ### [What Insurance Covers Extortion?](https://spot.insure/insurance-faq/what-insurance-covers/extortion) K&R or cyber insurance may cover a defined extortion demand; the policy’s threat definition determines which one responds. ### [What Insurance Covers Failed Software Implementations?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-failed-software-implementations) Technology E&O may cover a customer’s claim that negligent software implementation caused financial loss; the cost to finish or redo the project may be excluded. ### [What Insurance Covers False Advertising Claims?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-false-advertising) General liability or media liability may cover certain advertising claims, but standard exclusions can bar false statements about product quality, performance, or price. ### [What Insurance Covers Faulty Workmanship?](https://spot.insure/insurance-faq/what-insurance-covers/faulty-workmanship) Insurance rarely pays a contractor’s cost to redo faulty work; separate injury or property-damage claims may be covered under liability forms. ### [What Insurance Covers Forged Checks?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-forged-checks) Crime insurance may cover direct loss from forged or altered covered checks; electronic payment instructions may fall outside the instrument definition. ### [What Insurance Covers Intellectual Property Lawsuits?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-ip-lawsuits) Dedicated IP insurance may cover defined infringement defense or enforcement costs; other policies address narrower copyright, advertising, or cyber claims. ### [What Insurance Covers Inventory In Transit?](https://spot.insure/insurance-faq/what-insurance-covers/inventory-in-transit) Cargo or transit coverage may insure inventory while it ships; commercial property may cover it at a warehouse or store. ### [What Insurance Covers Investor Lawsuits?](https://spot.insure/insurance-faq/what-insurance-covers/investor-lawsuits) D&O may cover investor claims alleging management misstatements or governance failures when the claim fits the policy. ### [What Insurance Covers Invoice Fraud?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-invoice-fraud) Crime coverage may apply to fake invoices when social-engineering or funds-transfer wording covers the employee’s payment and the fraud method. ### [What Insurance Covers Kidnapping?](https://spot.insure/insurance-faq/what-insurance-covers/kidnapping) K&R may cover a defined kidnapping of an insured person and specified response expenses under the policy. ### [What Insurance Covers Libel and Slander?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-libel-and-slander) Cyber insurance may cover some libel and slander claims tied to a covered cyber incident; general liability or media liability may fit other publication claims. ### [What Insurance Covers Lost Business Income?](https://spot.insure/insurance-faq/what-insurance-covers/lost-business-income) Business-income coverage may replace defined lost income and continuing expenses after covered property damage causes a shutdown. ### [What Insurance Covers Money Stolen from a Hacked Bank Account?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-hacked-bank-accounts) Crime insurance may reimburse stolen account funds when funds-transfer or computer-fraud wording covers the transfer; cyber may pay separate response costs. ### [What Insurance Covers Patent Infringement?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-patent-infringement) Dedicated IP insurance may cover defense of specified patent claims; paying to enforce your own patent is a separate coverage question. ### [What Insurance Covers Phishing Losses?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-phishing) Cyber coverage may pay response costs after phishing, while crime coverage may address money stolen through a covered transfer or social-engineering grant. ### [What Insurance Covers Pollution?](https://spot.insure/insurance-faq/what-insurance-covers/pollution) Environmental liability may cover specified cleanup and third-party pollution claims; standard CGL generally excludes most pollution damage. ### [What Insurance Covers Privacy Lawsuits?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-privacy-lawsuits) Cyber or privacy liability may cover certain claims over exposed or mishandled personal information; defense, response costs, regulatory matters, and fines can have separate terms. ### [What Insurance Covers Product Injuries?](https://spot.insure/insurance-faq/what-insurance-covers/product-injuries) Product-liability coverage may cover third-party bodily injury caused by a product; replacing or recalling the product is separate. ### [What Insurance Covers Professional Mistakes?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-professional-mistakes) Professional liability, or E&O, may cover a client’s claim that a mistake in covered professional services caused financial loss. ### [What Insurance Covers Property Under Construction?](https://spot.insure/insurance-faq/what-insurance-covers/property-under-construction) Builders risk may cover eligible project property during construction, subject to the project description, locations, and covered causes. ### [What Insurance Covers Ransom Payments?](https://spot.insure/insurance-faq/what-insurance-covers/ransom-payments) Some K&R policies cover ransom tied to a defined kidnapping or extortion event, subject to approval, law, and policy limits. ### [What Insurance Covers Ransomware?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-ransomware) Cyber insurance may cover ransomware response, restoration, interruption, and extortion costs, subject to each section’s trigger and limits. ### [What Insurance Covers Rented Cars For Business?](https://spot.insure/insurance-faq/what-insurance-covers/rented-cars-for-business) Hired auto liability may cover business liability from a rental car; physical damage to that rental is separate coverage. ### [What Insurance Covers Sexual Harassment Claims?](https://spot.insure/insurance-faq/what-insurance-covers/sexual-harassment-claims) EPLI may cover specified sexual-harassment claims from employees or third parties, subject to the policy’s definitions and reporting terms. ### [What Insurance Covers Shareholder Lawsuits?](https://spot.insure/insurance-faq/what-insurance-covers/shareholder-lawsuits) D&O may defend covered shareholder claims against directors or officers, subject to insured-versus-insured and entity terms. ### [What Insurance Covers Slip And Fall Accidents?](https://spot.insure/insurance-faq/what-insurance-covers/slip-and-fall-accidents) CGL may cover a customer’s slip-and-fall injury claim at a covered premises or operations site. ### [What Insurance Covers Social Engineering Fraud?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-social-engineering-fraud) A crime policy may cover money sent after an employee is tricked only if it includes social-engineering coverage; ordinary funds-transfer wording may require an unauthorized bank instruction. ### [What Insurance Covers Software Downtime?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-software-downtime) Cyber business-interruption coverage may replace lost income after a covered security event; technology E&O may address customer claims over a service failure. ### [What Insurance Covers Software Errors and Coding Mistakes?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-software-errors) Technology E&O may cover client claims that a software error in covered services caused financial loss; fixing your own code and cyber response are separate questions. ### [What Insurance Covers Spoiled Inventory?](https://spot.insure/insurance-faq/what-insurance-covers/spoiled-inventory) Equipment-breakdown coverage may pay for spoiled inventory after a covered refrigeration failure when a spoilage grant applies. ### [What Insurance Covers Stolen Business Money?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-stolen-money) Commercial crime insurance may cover stolen business money through a specified grant for robbery, forgery, employee theft, or transfer fraud. ### [What Insurance Covers Supply Chain Interruption?](https://spot.insure/insurance-faq/what-insurance-covers/supply-chain-interruption) Contingent business-interruption coverage may cover a dependent supplier’s shutdown when the policy’s property-damage trigger is met. ### [What Insurance Covers Theft by Customers?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-customer-theft) Commercial property or crime insurance may cover customer theft of inventory or money when the relevant theft grant applies. ### [What Insurance Covers Tools On A Job Site?](https://spot.insure/insurance-faq/what-insurance-covers/tools-on-a-job-site) A contractors’ equipment floater may cover tools at a jobsite; builders risk typically addresses project property, not your tools. ### [What Insurance Covers Trademark Infringement?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-trademark-infringement) Dedicated IP or media liability may cover specified trademark claims; general liability wording for advertising injury is narrower and may exclude other trademark uses. ### [What Insurance Covers Wage And Hour Claims?](https://spot.insure/insurance-faq/what-insurance-covers/wage-and-hour-claims) EPLI may pay defense costs for some wage-and-hour claims, but policies commonly exclude unpaid wages and other compensation. ### [What Insurance Covers Wire Fraud?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-wire-fraud) Crime insurance may reimburse a fraudulent wire only when its funds-transfer or computer-fraud coverage matches how the payment was initiated. ### [What Insurance Covers Wrongful Termination?](https://spot.insure/insurance-faq/what-insurance-covers/wrongful-termination) EPLI may cover a covered wrongful-termination claim, including defense costs, subject to the policy’s exclusions and reporting terms. ### [What Insurance Protects Executives?](https://spot.insure/insurance-faq/what-insurance-covers/executives) D&O may defend executives against covered management claims when the role and alleged act meet the policy terms. ### [What Insurance Protects Founders?](https://spot.insure/insurance-faq/what-insurance-covers/founders) D&O insurance may protect a founder sued over management decisions if the founder qualifies as an insured person and the claim falls within the policy. ## Who Needs It ### [What Insurance Covers AI Companies?](https://spot.insure/insurance-faq/what-insurance-covers/what-insurance-covers-ai-companies) AI coverage depends on whether you build models, sell software, consult, process data, or use third-party models; technology E&O, cyber, media, and IP policies address different risks. ## Agent and Developer Resources - [Markdown page](https://spot.insure/insurance-faq/what-insurance-covers.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)