The short answer
A policy you bought in January ordinarily covers a customer you sign in June, because it insures your company's operations rather than a list of named contracts. The three exceptions are liability you take on by contract beyond what the form treats as an insured contract, work that falls outside the professional services your tech E&O describes, and requirements the new contract adds, such as higher limits or an additional insured. Send any contract that is new in size, kind or insurance clause to your broker before you sign.
The worry, stated plainly
You bought your insurance program in January. In June you sign a new customer, a bigger deployment, a different kind of work. Does the policy you already have cover the contract it never heard about? Founders ask this often. The answer is mostly yes, with specific exceptions worth knowing by name.
A general liability policy insures your company and its ongoing operations, not a fixed list of contracts. New customers and new jobs signed mid-term are ordinarily inside the policy automatically, because the policy was priced on what your business does, not on who it does it for. You do not need to call your broker every time you sign a deal.
Where the real gaps arise
The first gap is liability you take on by contract. Liability policies commonly exclude obligations you assume in an agreement except for a defined category the form calls an insured contract. Most routine indemnification clauses fit that definition; unusual or very broad hold-harmless language may not. The wider the indemnity you sign, the more it matters that someone has read it against the policy.
The second gap lives in tech E&O, and it is the sneaky one. E&O covers the professional services described in the policy. If the June contract has you doing something materially different from what you told the insurer in January, such as hardware where there was only software, the new work can fall outside the covered description while the old work stays covered. The policy did not shrink; your business outgrew its description.
The third gap is about requirements rather than coverage: the new contract may demand limits or endorsements your program does not yet have. Your broker requests those additions mid-term and insurers handle them routinely, but each one waits on the insurer's underwriting.
A habit that closes the gaps
One habit covers all three gaps: when a contract is new in size or kind of work, or its insurance clause asks for something new, send it to your broker before signature. The check is quick: does the indemnity fit the insured-contract definition, does the work fit the covered services description, do the required limits and endorsements exist. Most of the time the answer is yes on all three and the deal proceeds untouched. When it is no, finding out before signature turns a coverage gap into a to-do list.
This page describes coverage in general terms. It is not an offer of insurance, and carrier appetite, policy wording, licensing, and availability govern every quote and every claim.
Common questions
Does my general liability policy cover new contracts I sign mid-term?
Ordinarily yes. The policy insures your company's ongoing operations rather than a list of named contracts, so new customers and jobs are inside it automatically. The exceptions worth checking are broad indemnity clauses and contract-specific requirements like higher limits or additional insureds.
Does tech E&O cover a new kind of service I start offering mid-term?
Only if the new work fits the professional services described in the policy. Work materially different from what was described at application can fall outside that definition while everything else stays covered, which is why a real change in what you sell is worth a call to your broker.
Can I add coverage or endorsements in the middle of a policy term?
Yes. Mid-term changes are routine: carriers add limits, endorsements, and additional insureds throughout the policy period, with premium adjusted for the remaining term. The practical constraint is turnaround time, so requests should precede the signature that needs them.
Do I need separate insurance for each contract?
Almost never. Annual policies covering your whole operation are the standard structure, and per-project coverage is a specialty approach reserved for unusually large or unusual jobs. What varies per contract is the paperwork: certificates, additional insureds, and sometimes limits.
Terms in this guide
Read next
- Decoding a contract's insurance requirementsHow to read the insurance clause in a customer contract or lease: what each required line and limit means by counterparty, what additional insured actually asks for, and what is negotiable.
- The certificate of insurance, explained for foundersWhat a certificate of insurance is, what each box means, what additional insured and waiver of subrogation actually change, how fast one issues, and what to watch for before you send it.