Telecommunications Insurance Michigan Policy Information
Telecommunications Insurance Michigan. Telecommunication companies provide the wiring, cabling, equipment, and ongoing maintenance for services to residences and commercial enterprises. These companies may offer automated answering systems, cable access, internet access, and local, long-distance, and international telephone service, special communications devices for customers with physical disabilities, telegraphs, and wireless communications.
Service may be provided using overhead lines, underground utility cables, fiber-optic, microwave, or satellite systems.
The world is more connected than ever before, and as a telecommunications provider, you play a key role in keeping your clients connected. You may provide any number of services for your clients; for example, you may offer products and services to other business owners, or you may provide services to residential clients. Whatever services you provide, they play an invaluable part in connecting the clients you serve. While you do your best to ensure that everything runs as smoothly as possible, you never know if or when something will go wrong.
To protect yourself from the unexpected, you need to have the right type of telecommunications insurance Michigan coverage.
What type of insurance do telecommunications companies need? How much coverage should you carry? Read on to find the answers to these questions and more.
Telecommunications insurance Michigan protects your telecom company from lawsuits with rates as low as $39/mo. Get a fast quote and your certificate of insurance now.
Why Do Telecommunications Services Need Insurance?
Telecommunications companies face a variety of risks. Infrastructure can malfunction or be improperly installed, employees or third-parties can sustain injuries, your commercial property can be damaged in a storm or a fire. These are just a few examples of things that can go wrong, and as the owner and operator of your telecommunications company, you're legally responsible for the costs that are associated with these risks.
Damages, repairs, medical bills, and other expenses that you're liable for can be exorbitant. If you have to pay for these expenses yourself, there's no doubt that you'd end up facing serious financial hardship; you could potentially lose your business, too. That's why having the right type of telecom insurance Michigan in place is essential; it ensures that you have the means to pay for any expenses you may incur in the event that something goes wrong and prevents you from having to cover those expenses yourself.
In addition to the financial protection that insurance provides, you're also legally required to carry certain types of MI coverage; if you fail to have the necessary coverage, you won't be operating in compliance with the law and could end up facing stiff penalties and there's a chance that you could lose your business.
In short, telecom insurance protects you from financial hardship, legal problems, and could help you avoid losing your business. But what type of telecommunications insurance Michigan coverage do you need? - Let's explore:
What Type Of Insurance Do Telecommunications Businesses Need?
The specific type of telecommunications insurance Michigan coverage you'll need depends on a variety of factors; the location of your business, the specific services you provide, and the size of your operation, for example. With that said, however, there are certain policies that all MI telecom providers should have in place, regardless of these unique factors, including:
- General Liability - . This type of telecom business liability insurance safeguards you from the financial losses that are associated with third-party property damage and injury claims. For instance, if a operate a retail center, a client slips and falls on the premises, sustains an injury, and files a lawsuit against you, commercial general liability insurance will cover the associated costs, including legal defense fees and monetary damages you may be required to pay.
- Commercial Property - This policy covers the cost of damages that your commercial space may incur as a result of acts of nature of vandalism. For instance, if your office is damaged by a fire, commercial property insurance will cover the cost of any necessary repairs, as well as replace any tools and supplies that may be damaged by flames or smoke
- Electronic Data Loss - As a MI telecommunications company, you store a lot of data, such as software and sensitive client information. If power outages occur or viruses infect, corrupt, and compromise the sensitive information you store, electronic data insurance will help to cover the cost of replacing and recovering files.
- Workers Compensation - As a business owner, you are responsible for providing your employees with a safe work environment. Therefore, if a member of your staff sustains a work-related injury, you'll have to cover the cost of any medical care he or she may need, as well as the wages that the employee may lose while recovering; workers comp pays for these expenses.
MI Telecommunications Risks & Exposures
Premises liability exposure at the main office location is usually light as communication with customers is done by mail or electronically. Off-site premises exposures are heavy due to the running of lines or cables, both above ground and below ground. Company vehicles may disrupt normal traffic flow, requiring adequate notice to motorists to prevent accidents. Technicians may damage customers' premises when installing lines and cables within buildings. Excavation and maintenance of underground lines could cause damage to the property of others.
Towers pose an attractive nuisance to children and teenagers and should be fenced to prevent unauthorized access. Terrorism is a potential threat to public services. There must be adequate security to deter unauthorized access to any part of the company's premises. Despite the lack of scientific evidence, some cellular service providers have been sued on the allegation that repeated exposure to electromagnetic radiation causes injuries to people or animals. Personal injury exposures may result from failing to adequately secure customer information. Complaints by customers to the FCC regarding "slamming" or "cramming" offenses may result in high defense costs.
Completed operations exposures can be high if equipment is not properly installed. Loss of communications service could result in loss of earnings to businesses, particularly those who derive the bulk of their income from online sales.
Workers compensation exposures are very high. Working with power lines can result in electrical shocks. There should be adequate shutoff and lockout procedures to make sure the wiring is not live.
Falls can occur from ladders, scaffolds or cherry pickers, utility poles or towers. Adequate personal protective equipment is required. Failure to adequately warn motorists of road hazards can result in a worker being hit by a motor vehicle. Laying of underground cable can result in back sprains and strains from dragging heavy cables, or exposure to collapse hazards. Prolonged exposure to electromagnetic microwave or cellular transmissions has been linked to occupational disease.
Workers who visit customers' premises may be attacked by dogs or other animals. In the office where most work is done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.
Property exposures are high due to the high concentration of electronic equipment on premises. Ignition sources include electrical wiring, heating and air conditioning systems, and overheating of equipment. All of these require ongoing maintenance. Adequate fire detection and suppression equipment is recommended. Power surge equipment is needed to prevent lightning and other power losses. Smoke and water damage, even from a small fire, can result in a major loss without extensive contingency planning. Switching stations should be protected and security provided.
If maintenance and fueling of service vehicles is done on premises, all flammables must be stored away from heated areas in a fireproof cabinet. Welding and soldering should be done in a well-ventilated area that is free of combustible materials. Communications equipment may be targets for theft. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Telecommunication companies have very high exposure to business income loss as any power outage affects service to residential and business customers. Extra expenses may be high, as repairs must be made quickly to reduce downtime to dependent customers.
Equipment breakdown exposure includes breakdown losses to telecommunication devices, electrical control panels and other apparatus. All equipment must be inspected and maintained on a regular basis. Back-up generators should be available.
Crime exposure is from computer fraud and employee dishonesty. The exposure increases without thorough background checks of employees. Billing, ordering, and disbursement should be under separate supervisors. Reconciliation and audits should be routine. Computer fraud potential can be high as many customers pay by Electronic Fund Transfer (EFT). Adequate security is required to prevent unauthorized access to customer information.
Inland marine exposure is from accounts receivable as the company regularly bills customers for service, computers, radio and television floater (including towers), tools and equipment, and valuable papers and records for customers' and suppliers' information. The company is likely to have extensive communications systems, including computers, which are very expensive and must be backed up regularly. Computer systems must have adequate security features to prevent unauthorized access due to industrial espionage or by hackers. Communications towers are often in remote areas, and should be fenced to prevent access by unauthorized persons. Towers are susceptible to loss by high winds, lightning, icing, and airplanes. Protective features such as guy wires, lighting and de-icing equipment, are needed.
Service technicians carry tools and equipment to customers' premises for installation and repair. Vehicles should be kept locked at all times. Duplicates of records must be made often and stored off site. Storage on premises should consist of fireproof cabinets. There may be a contractors' equipment exposure if the company installs its own underground cables.
Commercial auto exposure may be high. If the company does its own repairs, vehicles are on the road on both routine and emergency basis. The vehicles must be out 24 hours per day, sometimes on rough terrain in inclement weather. Cable and the equipment used to install it are awkward to transport. Secure tying down is vital to prevent heavy damage to other vehicles. Vehicles may be parked along roads, disrupting regular traffic. Proper signage is required to warn drivers.
All drivers must be licensed with acceptable MVRs. Regular training should be provided in driving under difficult situations. All vehicles must be well maintained with documentation kept in a central location. If vehicles are provided to employees, there should be written procedures in place regarding personal use by employees and their family members.
MI Telecommunications Insurance - The Bottom Line
To find out more about what other telecommunications insurance Michigan policies you should have - and how much coverage you should carry for both regional and national networks, speak with an experienced an experienced commercial insurance broker.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Answering Service
- Attorney Lawyer
- Business Consulting
- Corporate Wellness
- Court Reporter
- Debt Collection Agency
- Detective Agency
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Services
- Financial Planner
- HR Consultant
- Insurance Agents & Brokers Insurance
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Project Management
- Temporary Staffing
- Tax Preparer
Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.
Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.
In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.
Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.
Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
Request a free Telecommunications Insurance Michigan quote in Adrian, Allen Park, Allendale, Ann Arbor, Auburn Hills, Battle Creek, Bay City, Berkley, Beverly Hills, Big Rapids, Birmingham, Burton, Cadillac, Clawson, Coldwater, Cutlerville, Dearborn, Dearborn Heights, Detroit, East Grand Rapids, East Lansing, Eastpointe, Escanaba, Farmington, Farmington Hills, Fenton, Ferndale, Flint, Forest Hills, Fraser, Garden City, Grand Haven, Grand Rapids, Grandville, Grosse Pointe Park, Grosse Pointe Woods, Hamtramck, Harper Woods, Haslett, Hazel Park, Highland Park, Holland, Holt, Inkster, Ionia, Jackson, Jenison, Kalamazoo, Kentwood, Lansing, Lincoln Park, Livonia, Madison Heights, Marquette, Melvindale, Midland, Monroe, Mount Clemens, Mount Pleasant, Muskegon, Muskegon Heights, New Baltimore, Niles, Northview, Norton Shores, Novi, Oak Park, Okemos, Owosso, Pontiac, Port Huron, Portage, Riverview, Rochester, Rochester Hills, Romulus, Roseville, Royal Oak, Saginaw, Sault Ste. Marie, South Lyon, Southfield, Southgate, St. Clair Shores, Sterling Heights, Sturgis, Taylor, Traverse City, Trenton, Troy, Walker, Warren, Waverly, Wayne, Westland, Wixom, Woodhaven, Wyandotte, Wyoming, Ypsilanti and all other cities near me in MI - The Great Lakes State.
Also learn about Michigan small business insurance requirements for general liability, business property, commercial auto & workers compensation including MI business insurance costs. Call us (313) 344-7177.