What Technology, Media & Telecommunications Is All About:
Technology, media, and telecommunications businesses are focused on building and maintaining the infrastructure that supports their customer-facing services. Business owners in these fields need to make sure that their infrastructure and people are protected so that their customers receive reliable service.
A business insurance policy covering these types of companies will help you sleep better knowing that your assets are protected.
Read on to see understand what insurance you might need.
Who Needs Insurance Within the Technology, Media & Telecommunications Space?
Broadly speaking, there are two types of technology, media and telecommunications companies- those whose main assets are digital, and those whose main assets are physical. Both types of businesses need insurance. Here are some examples of businesses that fall into each of these categories:
Digital
- Television Broadcasting
- Internet Publishing and Web Search Portals
- Radio Stations
Physical
- Wired Telecommunications Carriers
- Wireless Telecommunications Carriers
- Data Processing, Hosting and Related Services
Still not sure what you need?
CoverWallet's Insurance Checklist , you'll find a list of insurance types needed for your specific business or industry.
What Insurance Do Technology, Media & Telecommunications Professionals Need?
The type of insurance you need depends on what type of business you have. Here’s an overview of the most common types of insurance for Technology, Media and Telecommunications companies:
General Liability
General Liability Insurance is the baseline insurance needed by any small business owner. It protects the company in case of an accident at the workplace that causes harm to any individual associated with the business. General liability will cover medical bills, damage to property, and any legal fees associated with the incident. And, the coverage doesn’t stop at the individual level: this type of insurance also covers accidental damage to any property that your business is renting.
When Should You Get General Liability Insurance?
You should buy General Liability Insurance as soon as you open for business. It’s an essential must-have to ensure your company stays afloat.
For Example…
Your television broadcast company hosts an interview with a prominent athlete who trips on one of the wires in the studio and sustains an injury. General liability Insurance will cover her medical bills as well as any legal fees you would have to pay in a potential lawsuit.
Other Things to Note…
General Liability Insurance covers a lot of situations, but not everything. If your business operates commercial properties like warehouses or garages, you’ll benefit from the additional protections offered by a Business Owners Policy (BOP).
Business Owners Policy
A Business Owners Policy (BOP) is a great option for businesses that are looking for a discount on General Liability and Property Insurance. It also usually includes business continuity insurance, which covers operating expenses like rent and wages for up to 12 months following a disaster such as a fire or vandalism. And it allows you to add on more specialist insurance policies that are particularly useful for tech, media and telecommunications companies, such as data breach coverage.
When Should You Get a Business Owners Policy?
Buying a Business Owners Policy is a smart way to bundle General Liability and Property Insurance, each of which is mission-critical. This type of insurance should, therefore, be bought as soon as your company opens for business.
For Example…
Your inventory of fixed line telecommunications equipment becomes damaged in a warehouse fire. A tailored Business Owners Policy would cover the warehouse, equipment, rental of a temporary warehouse, and wages for the workers while operations are being restored. It would allow you to get back on your feet without sustaining huge financial losses. Phew.
Other Things to Note…
A Business Owners Policy can be very tailored, but usually does not include Workers Compensation, Health or Disability Insurance, Auto Insurance or Professional Liability. If you need coverage in any of these particular areas, you’ll need to purchase it separately.
Workers Compensation
Workers Compensation is a type of insurance policy that covers medical costs and wages for employees who are injured at work, regardless of who was at fault. In order to receive these benefits, an injured employee must give up his or her right to sue the company.
When Should You Get a Workers Compensation Policy?
Each state has its own regulations about Workers Compensation requirements- in some states it’s mandatory to have it in place before you have any employees! Make sure you check out your state’s regulations. It’s probably smart to purchase it even if you’re not required to so that you have protection from employee lawsuits.
For Example…
The librarian in your media archive develops a back strain from repeatedly lifting piles of books. Eventually he pinches a nerve and cannot walk. Workers Compensation would cover his medical bills and any wages he might lose while home from work.
Other Things to Note…
In many states, very small businesses are given clearance to operate without workers’ compensation. For example, in the state of Florida, you’re not required to carry Workers Compensation if you have 3 employees or less. So, make sure you verify your state’s status before making a decision about whether or not to purchase a policy.
Commercial Property
Commercial Property Insurance provides coverage for your important business assets. This includes physical properties that you own and any equipment that’s essential to your business operations. Commercial Property Insurance is particularly important for Technology, Media and Telecommunications businesses as computer equipment can be costly to obtain and even costlier to lose.
When Should You Get Commercial Property Insurance?
You should purchase a Commercial Property Insurance policy when your business starts acquiring physical assets.
For Example…
If a fire breaks out in your server closet, you may experience an extreme and direct interruption of your business. Likewise, lost servers could cause your website to go down, as well as result in the loss of valuable data. A Commercial Property Insurance policy would provide coverage for this instance.
Other Things to Note…
If your business owns vehicles registered to your business, a Commercial Property Insurance policy might not cover them. Depending on the situation, you would likely need to insure these vehicles under a Commercial Auto Insurance policy.
Errors & Omissions Insurance
This insurance policy includes coverage for businesses that provide services that involve a reasonable degree of difficulty. E&O provides legal representation for your business and monetary payouts. This applies in situations where your business is found liable for accidentally missing a few steps when providing services to your customers.
When Should You Get Errors & Omissions Insurance?
E&O should be purchased before you begin taking on customers or clients. Mistakes can happen to the best of us. It’s best to protect your employees, yourself, your business, and your customer’s best interests from the very first day.
For Example…
If a technician fails to install a client’s telecommunications equipment properly, that client may experience a significant interruption in business. E&O Insurance may cover your business’ liability in this case.
Other Things to Note…
While Errors and Omissions Insurance covers omissions and mistakes, it does not cover intentionally misleading business practices.
Fidelity Bonds
Fidelity Bonds are designed to protect businesses and their customers from the actions of employees. Specifically, Fidelity Bonds help free a business from financial liability and provide compensation when employees commit fraudulent acts. Those acts can be anything from embezzlement to stealing a customer’s identity.
When Should You Get Fidelity Bonds?
Fidelity Bonds should be purchased once your business begins hiring employees. This is especially important when you have employees handling private customer data or your businesses finances.
For Example…
If an employee uses privileged access to client servers to steal social security numbers, your business could be held liable. Fidelity Bonds will cover potential claims.
Other Things to Note…
Fidelity Bonds are designed to cover a certain amount. For example, a bond purchase of $250,000 will only cover up to that amount. It is important to purchase the amount that you believe best suits your business.
Other Insurance Types to Consider…
- Commercial Auto Insurance is just as important as property insurance for companies that use vehicles to move goods. Broadcasting and telecommunications companies, in particular, may want to look into purchasing this type of policy.
How Much Does Insurance Cost?
The cost of business insurance for tech, media and telecommunications companies will vary depending on your business type and variables such as location, risk factors, claim history, and business size.