Operational Highlights:

• Cover-All was listed on the NYSE Amex stock exchange on May 25, 2011.
• For the six months ended June 30, 2011 revenue was $10.2 million compared to $8.4 million for the comparable period in 2010, an increase of 20.6%. The $10.2 million in revenue was the highest first-half revenue total in Cover-All’s history.
• License revenue for the six months ended June 30, 2011 was $3.8 million, up 165.7% compared to $1.4 million for the same period in 2010.
• Support Services revenue for the six months ended June 30, 2011 was $4.2 million, up 5.8% compared to $4.0 million in the same period in 2010. The Company combined two of its revenue categories, “Maintenance” and “Application Service Provider (“ASP”) services,” on the statements of operations in the first quarter of 2011 and 2010 and will be reporting these revenue categories as “Support Services” going forward.
• Net Profit for the six months ended June 30, 2011 was $1.9 million, or $.07 per fully diluted share, up 46.7% compared to $1.3 million, or $.05 per fully diluted share in the comparable period in 2010.
• Revenue for Q2, 2011 was $5.0 million, the third best quarter in Cover-All history, up 6.4% over Q2, 2010.
• Net Profit for Q2, 2011 was $.7M, or $.03 per fully diluted share, up 20.4% over Q2, 2010
• The Company’s balance sheet remains strong with stockholders’ equity at a record $17.4 million as of June 30, 2011. The Company completed the first half of 2011 with $4.0 million in cash, $5.6 million in working capital and no long-term debt.
• Cover-All announced general availability and first customer delivery of its NexGen Business Intelligence Suite, which can be implemented either as an integrated component of My Insurance Center Business Acquisition Platform or as a stand-alone solution that can leverage data from virtually any insurance source system.
• Cover-All delivered its new My Insurance Center NexGen Commercial Package Product as promised to the first two customers and is now available for general release.

John Roblin, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, “Cover-All continues to execute on our aggressive product rollout and growth strategy while delivering record revenues and operating income.  These year-to-date and quarterly results represent a very successful continuation of the strong start we reported in our first quarter of 2011. We remain focused on expanding our business profitably. The second quarter was our third best revenue quarter ever, and in the first six months of this year, we grew revenues 20.6% compared to last year’s first six months. We grew operating and net income by 30.5% and 46.7%, respectively, year-to-date over last year, which demonstrates the increasing flexibility in our business model. Year-to-date EPS of $0.07 per diluted share is a new record, exceeding any first six month period by 40%.”

Financial Results for the Six Months Ended June 30, 2011

Total revenues for the six months ended June 30, 2011 were $10.2 million compared to $8.4 million for the same period in 2010, an increase of 20.6%. License revenue was up 165.7% to $3.8 million compared to $1.4 million for the same period in 2010. Support Services (formerly Maintenance and ASP revenue, which together represent contracted continuing revenue), was $4.2 million for the six months ended June 30, 2011, up 5.8% from $4.0 million in the same period in 2010. Professional Services revenue for the six months ended June 30, 2011 was $2.1 million, down 29.3% compared to $3.0 million for the same period in 2010.

Total expenses (cost of revenue and operating expenses) for the six months ended June 30, 2011 were $8.3 million, up 18.6% compared to $7.0 million in the comparable period of 2010. Operating income for the six months ended June 30, 2011 was $1.9 million up 30.5% compared to $1.5 million in the comparable period in 2010. Net income for the six months ended June 30, 2011 was up 46.7% to $1.9 million, or $0.08 per basic and $0.07 per diluted share (based on 25.1 million basic and 26.4 million diluted weighted average shares, respectively), compared to $1.3 million, or $0.05 per basic and diluted share (based on 24.8 million basic and 25.6 million diluted weighted average shares, respectively), in the same period of 2010. The first quarter of 2010 included $285,000, or approximately $0.01 per share, in expenses related to the Business Intelligence asset acquisition.

Financial Results for the Three Months Ended June 30, 2011

Total revenues for the three months ended June 30, 2011 were $5.0 million compared to $4.7 million for the same period in 2010, an increase of 6.4%. License revenue was up 375.6% to $1.9 million compared to $396,000 for the same period in 2010. Support Services (formerly Maintenance and ASP revenue, which together represent contracted continuing revenue), was $2.1 million for the three months ended June 30, 2011, compared to $2.0 million in the same period in 2010. Professional Services revenue for the quarter was $1.0 million, down 55.6%, compared to $2.3 million for the same period in 2010.

Total expenses (cost of revenue and operating expenses) for the quarter ended June 30, 2011 were $4.3 million, up 7.4% compared to $4.0 million in the comparable period of 2010. Operating income for the quarter ended June 30, 2011 was $675,000 compared to $673,000 in the comparable period in 2010. Net income for the quarter ended June 30, 2011 was up 20.5% to $681,000, or $0.03 per basic and diluted share (based on 25.2 million basic and 26.6 million diluted weighted average shares, respectively), compared to $566,000, or $0.02 per basic and diluted share (based on 24.8 million basic and 25.8 million diluted weighted average shares, respectively), in the same period of 2010.

Mr. Roblin concluded, “We delivered our new NexGen Commercial Package product in the second quarter to two customers and announced general availability of our NexGen Business Intelligence Suite.  The latter is an important milestone as we have nearly completed transitioning the business model of our Business Intelligence acquisition in 2010 from a professional services-only sales model to a product and support model that can be broadly and quickly implemented, delivering value to customers quickly. Our new Business Intelligence product is fully integrated into our My Insurance Center Business Acquisition Platform and will also be sold as a stand-alone product. This product and the NexGen products are already being actively marketed and sold, and as a result our sales pipeline has reached the highest levels in our company’s history. We are better positioned than ever to meet our aggressive objectives in 2011 and beyond.”

Balance Sheet

Stockholders’ equity was $17.4 million as of June 30, 2011 compared to $15.2 million as of December 31, 2010. Total assets increased to almost $21.0 million as of June 30, 2011 compared to $19.5 million as of December 31, 2010. As of June 30, 2011, the Company had $4.0 million in cash, $5.6 million in working capital, up from $5.0 million at December 31, 2010, and up sequentially from $5.5 million at March 31, 2011, and no long term debt.

Conference Call

Management will conduct a live teleconference to discuss its 2011 second quarter financial results at 4:30 p.m. ET on Thursday, August 11, 2011. Anyone interested in participating should call 1-877-941-4775 if calling from the United States, or 1-480-629-9761 if dialing internationally. A replay will be available until August 18, 2011, which can be accessed by dialing 1-877-870-5176 within the United States and 1-858-384-5517 if dialing internationally. Please use passcode 4464112 to access the replay. In addition, the call will be webcast and will be available on the Company’s website at www.cover-all.com or by visiting http://viavid.net/dce.aspx?sid=00008B20.

About Cover-All Technologies Inc.

Cover-All Technologies Inc. is a leader in developing sophisticated software solutions for the property and casualty insurance industry. With our industry leading Business Acquisition Platform – My Insurance Center, and the recently announced Business Intelligence Solution Cover-All continues to expand its growing inventory of business focused, advanced technology solutions. The “New” Cover-all continues to innovate while leveraging its reputation for quality insurance solutions, knowledgeable people and outstanding customer service to enable our customers to achieve superior business results.

Pairing state-of-the-art functionality of My Insurance Center NexGen and the NexGen Business Intelligence Suite with experienced service professionals, who after implementation ensure continued compliance with statutory, regulatory, and market differentiation needs, Cover-All continues its tradition of innovating technology solutions to revolutionize the way the property and casualty insurance business is conducted.

Additional information is available online at.

Cover-All®, My Insurance Center™ (MIC) and Insurance Policy Database™ (IPD) are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders.

Forward-looking Statements

Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks which may cause the Company’s actual results in future periods to differ materially from expected results.  Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful addition of personnel in the marketing and technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company’s control.  Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (“SEC”) over the last 12 months, including but not limited to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, filed with the SEC on March 24, 2011, and Post-Effective Amendment No. 3 on Form S-3 (File No. 333-156397) filed with the SEC on July 26, 2011 copies of which are available from the SEC or may be obtained upon request from the Company.

Click here for the full press release

For information on Cover-All, contact:

Ann Massey

Chief Financial Officer

973/461-5190

amassey@cover-all.com

Investor Contact:

Hayden IR

Brett Maas, Principal

(646) 536-7331

These themes have been central to the evolution of our solution set over the past ten years, and were a driving force in a re-architecture of our platform which began four years ago and continues to add new capabilities.  But with so many vendors in the “Policy Administration” space, all using the same buzz words, all claiming to offer “the key” to your business, how does one select the right partner? Frankly, there isn’t a one-size fits all answer that would end your selection process today.  However, with more than a few implementations and successful partnerships under our belt, we’d like to offer the following three points for you to consider as you search for a partner/solution:

What are your objectives, and what enablers do you need to achieve them?
Early in your analysis, it is important to define exactly what the organizational objectives are.  Only then can you determine what capabilities you will need to reach those objectives.  As you consider the features of the ideal solution, it is important to remember how those new enablers will impact the organization.  With the overarching goals in mind and looking to take full advantage of these new capabilities, what changes will be required to process, and how will roles need to be redefined?  Without this critical step, you could be simply replacing your current solution with a shinier one, but ultimately unable to reap the any significant benefit.   As an aside, this is a great opportunity to innovate.  Don’t be constrained by former processes, convoluted work-arounds, or confusing products.  Leverage the expertise of your experienced vendor partner to explore new means to new ends – always challenging the status quo.

Rules and Tools vs. Full Service
Lack of flexibility, poor turn-around times, and exorbitant costs associated with homegrown and legacy vendor technologies, gave rise to the rules and tools based products on the market today.  The idea was that customers could maintain their product set more effectively and efficiently than a vendor.  There are potential issues with this line of thinking, however:

• The total cost of ownership for “Rules and Tools” is not always well understood or measured. Internal resource allocation mechanisms often hide the true cost of system development, sometimes misrepresenting the overall cost of the project and subsequent maintenance. Further, very few internal organizations are willing or able to provide their businesses with service level standards. How will you ensure that your various business units will enjoy consistent service, even as organizational priorities shift?
• The learning curve of “Rules and Tools” based solutions is often underestimated.  Even in the case of non-standard lines, internal resources can spend months learning not just the vendor’s product, but the nuances of translating business requirements into functional specifications for that particular technology set.  What was anticipated as being a more efficient process can result in even longer delays and more constraints, adding to your opportunity cost and potentially, your reputational cost as you risk compliance. 

Just ask the customers.
The optimum vendor should have a robust client base comprised of both long-time and new customers, as well as customers of varying sizes. But most importantly, customers should be leveraging business models and product offerings similar to those of your organization.  Those customers’ testimonials are the best gauge of what type of relationship you can expect. Prepare a detailed set of questions that look to substantiate the claims the vendor has made, as well as questions that address your concerns.  Also be sure to speak with customers who are leveraging the specific version of technology being considered.   New untested technology presents a set of risks you need to knowingly accept.

Approaching technology within a multi-year framework can also help you to manage enterprise-wide changes to your business processes more cost effectively. The instant benefits of even a partial implementation can be quite significant. You could see a substantial increase in speed to market, a decrease in administrative or maintenance costs, and efficiencies that translate into a visible improvement in your workflow within three months of a partial implementation.

Yet multi-year approaches, if not implemented properly or with the right solutions, can come with some serious issues. Will the plan you’ve committed to today be viable in  say three to five years when the project is complete? How will that technology grow and change with your business, and will it keep pace with emerging trends? Will those industry trends in thwart your plans because your solutions struggle to adapt to change?

These issues can be addressed with the right vendor. Examine the provider’s ability to deploy updates and enhancement, despite your specific customizations. Try to determine how “supportable” your specific environment will be over the long term. If the solution you choose is externally facing, understand the level of data security that’s included, as well as how scalable that solution is within your current framework. A good solution provider can integrate new technology within your current framework.

Also, a good solution provider will use the latest technology to maximize the effectiveness and productivity of what you current use. Their technology should be “future proof” – able to adapt to emerging technology and grow with your business. Finally, you should be able to implement in stages in order to spread out the costs and better afford the best technology for your business.

For example, if your current business writes in three states, but a recent acquisition expands your market to additional two states, a horizontally scalable solution would allow you to simply add those additional states to your existing core solution in a matter of weeks. Or, if your claims handling is moved from a legacy internal solution to a third party administrator, your horizontally scalable technology solution can be easily integrated to address those changes.

But why horizontal? Horizontally scalable architecture in your solution is typically more flexible than a vertical architecture, allowing for the addition of capacity or functionality on the fly. Further, such architecture provides the ability to integrate multiple solutions attaching to a single foundation, thus facilitating expansion that feeds from a single source of information. Conversely, vertical architecture most often requires costly and time intensive changes to the core.

So what does that mean for your business? It means the technology solution you choose for your business should work well today and just as well two years from now, even if your business then looks much different than it does today.  It also means that costs can be kept within reason. Because you can expand whenever you’re ready and able, you pay only for those components or modules you need now. Therefore, your budgets remain intact and you realize immediate business benefits from the pieces you purchase today.

Is your current system vertical? What limitations have you noticed? Do changes cost too much and take too long? Does your IT group tell you it just can’t be done? How would a horizontal structure benefit your business?

Your underwriting process is only as good as the data in front of you. That data has a shelf life, much like most data gathered in the research and benchmarking processes. The truth is businesses evolve and markets change constantly, sometimes quite rapidly. Today’s reports are current – well, today. Tomorrow could be another story as market factors, economic influences, and claims figures change.

But if your underwriting process had access to real-time ad hoc reporting capabilities, if the information you were working with was the most current, how would that improve your underwriting quality? If information is available to you instantly, your underwriting department will be able to better quantify the risks and price your products. As a result, your products are going to perform much more effectively.

Take a look at your insurance technology solution. Are you being given access to real-time data and information, or is your information static and dated? Where is your information being gathered from? How many groups do you interface with to get information: data warehousing, claims, re-insurance, billing? If those interfaces are not part of your technology architecture and your policy administration or underwriting platform is not talking to other enterprise systems, you may be working in a silo and relying on outdated information.

When evaluating a policy solution, ask yourself if that platform could serve as the hub of your business. Does it keep all the information about your business “in the center?” Are you able to harness that information in real time to help you make critical, time-sensitive decisions about a risk?

Does your insurance technology solution provider support your ongoing compliance needs? 

Considering that ISO has developed over 17,500 global standards on any number of subjects, it’s easy to see how compliance can be elusive. Companies could spend millions just to maintain up-to-date knowledge of ISO alone, not to mention the changes to NCCI’s workers’ compensation rating recommendations. State and local compliance only adds to the strain on insurers.

A good insurance technology solutions provider offers compliance support for multiple programs in all fifty states. Look for a provider with real-time management and support capabilities. Also, does your solution provider support individually filed rates, loss cost modifiers, or company deviations? Ensure your provider specifically provides ongoing updates and support for ISO and NCCI. Ask your provider when regulatory updates are applied to your solution and how company mandated deviations are handled. Unless there is a sound and frequent process for applying updates regularly, your compliance could suffer.

Consider what a comprehensive, compliant solution can do to help you achieve your business objectives. The right platform with continuous support and updates can increase your competitive edge and help your company grow its business. For example, one of our customers, a start-up carrier, grew its book of business from zero to $200 million in premiums using our multi-state ISO platform.  One enabling factor was our customer’s ability to focus on their business while we managed the technical implications of the many statutory and regulatory changes, which at that time, could have otherwise inundated the fledgling carrier. 

In order for your technology solution to protect and propel your business model, you don’t just need a provider, but a support system and a partner in your compliance efforts. 

When was the last time you and your provider sat down and discussed your compliance objectives? If you’re unsure, have a talk with your provider and risk management team to understand the repercussions of missed compliance and opportunities.

It’s a common mistake – companies, in an attempt to save money, take the development and maintenance of their technology in-house. And for a while, it may work. But the cost savings that companies chase rarely, if ever, come to fruition thanks to the increasing complexities of technology and the demands on staff to keep ahead of the technology curve.

 It’s the same for insurers in the property and casualty space. Insurers want affordable automated system options and unparalleled technical support. Yet creating, and then maintaining, customized automation that responds to all aspects of the P&C business is detailed, time-consuming, and oftentimes impossible for the in-house staff to pull off effectively. In some cases, IT teams build and test business systems that become obsolete shortly after launch.

 That’s why outsourcing your technology solutions makes sense. When choosing a company, look for the following:

• Specialty in your business area
• Products and customization options that respond to your business requirements
• Knowledge of your industry and all regulatory requirements
• Scalable solutions and web-based platforms
• Full-scale automation that integrates all your business processes into one solution
• Rate filing support
• Technical support

 Choosing a company such as Cover-All Technologies to customize and maintain your technology frees you to do what you do best – conduct business. Remember: in-house solutions are not an automatic cost savings. In many cases, they can be a burden that negatively impacts your profit margin.