Telecommunications Insurance

Whether you're just starting your business or own a well-established firm, mistakes and accidents involving your telecom company can have a tremendous impact on your clients. If they end up losing money, the result could be a lawsuit.

Errors and omissions insurance (E&O), also called professional liability insurance, covers legal costs if a client sues your business over negligence, such as network downtime that disrupts their profits. E&O insurance is often required in contracts, as it protects your clients from potential losses related to your company's services.

Tech companies often bundle E&O with third-party cyber insurance in a package called tech E&O, which covers lawsuits related to failures in cybersecurity. Even if your company wasn't at fault, a client might file a frivolous lawsuit in an attempt to recover costs from a data breach or other disruption.

You'll also need cyber insurance and other business insurance policies to protect your company against data breaches, employee injuries, and other costly incidents. Keep in mind, cybercriminals often target small businesses as they have the least security measures in place.

Clients, landlords, and lenders may require you to be insured, bonded, or both. In some cases, business insurance is required by law.

Here are several situations where telecom companies must have insurance:

• Your clients require coverage. Clients may include tech E&O, general liability, or a fidelity bond in their contract terms to avoid financial losses.
• You rent an office or apply for a loan. You might need general liability insurance to sign a lease or get a business loan.
• You have employees. Most states require workers' compensation for businesses that have employees.
• You have a company car. Similarly, you'll need commercial auto insurance to comply with state laws if your business owns a vehicle.

Even when it's not required, it's important to have insurance. Without it, medical bills or legal costs from a single accident or error could potentially bankrupt your business.

Here’s a closer look at other important telecom insurance products and how they can protect your business:

• Commercial property insurance covers your office and everything in it in the event of a fire, storm, or burglary. Should your machinery or equipment suffer a mechanical or electrical failure, equipment breakdown coverage would provide the funds to repair or replace the damaged equipment.
• Inland marine insurance, sometimes called tools and equipment insurance, provides coverage for mobile business property. That includes cables, tools, and materials while they are in transit or in use at a jobsite.
• Business income insurance, also known as business interruption coverage, offsets your lost income and pays for daily operating expenses if a fire or other covered property claim forces your business to close temporarily.
• Hired and non-owned auto (HNOA) insurance covers auto accidents involving personal, rented, or leased vehicles used by your telecom company. You'll need this coverage to supplement personal auto insurance if you or your employees drive their own vehicles for work purposes.
• Commercial umbrella insurance helps pay for claims that exceed the limits on your underlying general liability, commercial auto, or employer's liability insurance (part of workers' comp).

If you need help finding the right coverage, don't hesitate to contact an agent. They can help you find cost-saving bundles, choose the best coverage for your insurance needs, and add endorsements for any special risks.

It's easy to find affordable insurance with Insureon. Our easy online application lets you compare quotes from trusted providers to find policies that fit your budget and your business risks.

Other ways to save money on business insurance include:

• Bundle policies. Small telecom firms often save money by purchasing two or more types of coverage in one package, such as a business owner's policy or tech E&O.
• Customize your coverage. Choose lower limits or higher deductibles to reduce your premium, but make sure your policy can still cover a potential claim.
• Focus on cybersecurity. Cybersecurity controls, such as multi-factor authentication, protect your company from data breaches and other cyber incidents. Insurance companies often provide discounts for approved security measures.
• Risk management. Policyholders can prevent employee injuries and customer accidents that lead to claims by eliminating loose cables and other tripping hazards in the office, and by providing ergonomic setups for employees.

Our insurance agents can help you find the right insurance solutions for your budget and your needs, whether your company's focus is on fiber optic internet, cell service, or maintaining towers, antennas, and other equipment.