Communication is key. As a telecommunications company, you provide an essential service which means you’re under vast amounts of scrutiny and pressure to provide seamless and secure worldwide communications. The risks you face are significant. You need risk-management experts handling your telecommunications company insurance. ALIGNED’s advocates are commercial insurance specialists and we’ve put together with pertinent information regarding the telecommunications industry in this post, including information on telecommunications insurance.
An Overview of Telecommunications Companies
According to Investopedia, the telecommunications industry can be described this way:
“The telecommunications sector consists of three basic sub-sectors: telecom equipment (the largest), telecom services (next largest) and wireless communication.
The major segments within these sub-sectors include the following:
- Wireless communications
- Communications equipment
- Processing systems and products
- Long-distance carriers
- Domestic telecom services
- Foreign telecom services
- Diversified communication services
The smallest, but fastest-growing, area within the sector is wireless communications, as more and more communications and computing methods shift to mobile devices and cloud-based technology. This piece of the industry is the anticipated keystone for the continued global expansion of the telecommunications sector.”
Telecommunications company insurance, however, can also cover media companies such as:
- Internet publishers
- Radio and TV stations
- Video production companies
to name a few. No matter where your company is in the network of telecommunication companies, your liability exposures are similar and require responsive, comprehensive telecommunications company insurance.
Top Ten Risks Facing Telecommunications Companies
Ernst & Young LLP, one of the world’s largest multinational professional services network, frequently publishes a ‘Top Ten Risks in Telecommunications’ study. Here are the top ten risks facing telecommunications companies that they’ve identified in their latest report:
- “Failure to ensure infrastructure resilience and reach
- Inability to scale internal digitization initiatives
- Failure to redesign workforce purpose and inclusion
- Failure to improve capex efficiency and network returns
- Underestimating changing imperatives in privacy, security and trust
- Poor management of investor and stakeholder expectations
- Ineffective engagement with industry verticals and public sector
- Inability to adapt to a changing regulatory landscape
- Failure to mitigate evolving disruptive scenarios
- Failure to take advantage of changing market structures”
While Ernst & Young specializes in strategic analysis, our commercial insurance specialists at ALIGNED are concerned with liability exposures and business risks faced by telecommunications companies including malfunctioning equipment, improperly laid cables, cyber security threats and more.
We’ve identified key coverages that address the unique challenges facing telecommunications companies and they form the foundation of a telecommunications company insurance policy plan. Those coverages are summarized in the next section.
Essential Coverages in Telecommunications Company Insurance
These are the basic summaries of each of the coverages that can be included as part of your telecommunications company’s insurance package. Click on the link for more information.
Cyber Liability & Privacy Insurance – Telecommunications companies carry vast amounts of data and highly-sensitive information on users and subscribers. And despite having some of the most sophisticated cybersecurity systems in place, we’ve seen several high-profile organizations suffer breaches over the years including the CRA, which is now facing a class-action lawsuit. No telecommunications company insurance plan is complete without cyber liability insurance coverage as it can cover the costs of a breach including repair costs, notification costs and ransomware demands, among others.
Errors & Omissions (E&O) / Professional Liability Insurance – This coverage provides protection for telecommunications companies in the event they face litigation alleging that a disruption in service or some form of professional negligence caused losses to an affected party. Professional Liability coverage can include legal fees, settlements and awards for damages. It’s important to keep in mind the high costs of defending against a lawsuit whether it has merit or not.
Commercial General Liability Insurance – Commercial General Liability insurance is essential coverage for all businesses and will appear in a telecommunications company insurance plan in some form or another. It can provide coverage for lawsuits alleging personal injury, property damage, false advertising and, importantly for media and telecommunications companies, libel and slander.
Property Insurance – Commercial property insurance whether your telecommunications company operates in one location or has multiple sites, all of them need to be protected from perils such as fires, floods and windstorms to name a few. As a telecommunications provider, you will also likely need Business Interruption coverage to help you meet your operating expenses after a named peril and Extra Expense coverage to help set up a temporary location as you provide an essential service and can’t afford to go offline.
Boiler & Machinery Insurance / Equipment Breakdown Insurance – As a telecommunications company, your equipment is your livelihood and a malfunction can cause a cascade of costs and losses. As part of a telecommunications company insurance plan, equipment breakdown insurance can provide coverage for repair costs and the expenses incurred as a result of equipment failure.
ALIGNED – Your Advocate for the Telecommunications Company Insurance You Need
ALIGNED works with the top insurance companies in Canada but we work for you, our client. That means we fight to get you the best rates we can for the most comprehensive coverage on the market. Contact an ALIGNED advocate for a free quote on telecommunications company insurance in minutes.