Telecommunications companies are responsible for a number of duties. They are the reason that people can communicate with one another despite being thousands of kilometres away. Telecommunication companies have two main sections: The first is corporate and includes subcategories like media companies, television networks and newspapers, while the second is the actual network coverage, like wireless communication companies and domestic telecom services. Both network and corporate telecommunication companies face risks from internal and external factors. The damage of these risks can be minimized by purchasing insurance.
Why Do Telecom Companies Need Insurance?
Telecommunication companies have clients and customers that can span to reach locations worldwide. If not taken into consideration, the unanticipated and unexpected risks can mount to catastrophic outcomes for any company. Telecommunication companies carry extremely sensitive data and personal information. In the event of a data breach, companies may be faced with subsequent lawsuits. If, for some reason, your service is disrupted, and one or more of your customers files a lawsuit saying that you failed to provide a service, you could be forced to pay damages.
You need insurance because as much as you do your best to avoid these tragedies, there are some things you cannot control, even with your best efforts. It is so much better to have insurance and not end up using it than to not have insurance and end up with a multimillion-dollar bill you have to pay out-of-pocket or revenue.
Which Type Of Insurance Do You Need?
You need different insurances to cover different aspects of your business. Not all insurance packages are the same, and each needs to be customized to provide the necessary coverage for your specific needs. As a business that operates 24-hours, a good start would be cyber insurance, professional liability insurance and business interruption insurance.
Cyber Insurance for Telecommunications Company
Cyber insurance can cover you if your company is hit by a cyber-attack. As a telecommunications company, you need to protect your customers’ data and information. This information is valuable, and in the event of a cyber-attack, cyber insurance can cover any financial loss.
Professional Liability Insurance for Telecommunications Company
Professional liability insurance can cover you in the event that your service is down and customers incur some kind of damages as a result. Rather than paying damages or settlement fees out-of-pocket, allow your liability policy to cover some (or all) of the costs.
Business Interruption Insurance for Telecommunications Company
Business Interruption insurance covers lost wages of employees or lost company revenue in the event your service stops unexpectedly. As a 24-hour service provider, this type of insurance is essential!