Canadian Telecom Cabling Installers – Must-Have Insurance Coverage
Telecom cabling installers face a broad range of risks on a daily basis. These risks include falls, trips, electrocution, and other mishaps. Fortunately, there are methods proven to reduce these risks but nothing is guaranteed, which is why insurance coverage is so important. Your best option will be a customized policy specifically designed for telecommunication cable installers. Even if you face daily risks, a customized IT Company insurance policy will provide you with peace of mind when you are working long hours every day.
Below, you will discover a list of must-have telecom cabling installer insurance coverages that are feasible and accessible.
Errors And Omissions (E&O) Insurance
What is E&O insurance coverage? For starters, it covers third-party damage and accidents associated with a telecommunications cable installer’s negligent actions, court costs related to these negligent actions, lawsuit settlements, partial third-party claims, and legal fees.
Every Canadian telecom cabling installer is at risk of all the above. Accidents can occur at the drop of a hat, even if you take all of the necessary precautions. E&O insurance is a type of liability insurance for companies and professionals. Remember, E&O insurance is a must-have for both installers of electricity and telecommunications cables.
When Does E&O Insurance Kick In?
As soon as the telecom cabling installer is involved in a mishap that leads to third-party property damage or bodily injury, a claim must be filed with the insurer. This is the beginning of an E&O insurance claim. From here, the insurer initiates an investigation into the claim. If it is determined the installer is at fault, the insurer will cover most or all of the claim.
E&O insurance covers property damage and bodily injury associated with:
- Mishaps and oversights
- Negligent claim accusations
- Failure to follow through with a contractual agreement
- Data breach (cyber liability) lawsuits
IT Business E&O Insurance Coverage Options
Canadian IT businesses and their employees face risks associated with the Internet every second of the day. Unfortunately, there is little these companies can do to reduce these risks. Employee safety training combined with E&O insurance coverage plays major roles in IT safety operations. Without these necessities, IT companies and their employees would face even more risks related to third-party property damage and bodily injury claims.
For example, an IT company is facing a lawsuit related to an employee accident that caused thousands of dollars in third-party property damage. The company completed the claim process per its insurer’s recommendations. In the meantime, the company and two telecom cabling installers are twiddling their thumbs not knowing what to do next. Fortunately, all parties are covered under an E&O insurance policy, which is guaranteed to cover part of all of the third-party claims, monetary judgment, or settlement.
Cyber Liability Insurance
IT companies are responsible for putting security measures in place to protect their customers from cyberattacks. This is a big responsibility, as hackers are diligently working around the clock searching for computer system vulnerabilities. Cyber liability insurance is a must-have for IT companies.
Even a minor security breach can expose thousands of consumers’ personal information. The more severe the security breach, the higher number of victims. While all security breaches cannot be prevented, financial devastation for IT companies and their employees can be prevented with cyber liability insurance.
Cyber liability insurance covers damages caused by:
- Security breaches
- Ineffective security measures
- Security vulnerabilities
The policy will cover the IT company’s legal expenses, settlements, and lawsuit judgments. There are several types of cyber liability insurance, including first- and third-party policies. Third-party cyber insurance covers third-party damage caused by security breaches. First-party cyber liability insurance, on the other hand, covers damage related to on-site security breaches. For example, a data breach at the IT company’s headquarters exposed thousands of Internet users’ personal information.
Cyber liability insurance protects IT companies, their customers, and employees from financial damage related to cyberattacks and data breaches.
Commercial Auto Insurance
IT companies generally own and operate a fleet of work vans and trucks. This is the only transportation IT employees have to get from point A to point B. Depending on your business operations, an IT fleet of work vans spend more time on the road than in the company parking lot.
Accidents involving company vehicles are reported daily in Canada. While most of these motor vehicle accidents are minor, a few are responsible for the driver or third-party drivers and passenger deaths. Regardless of the responsible party, the IT company is generally left holding the bag. To decrease the financial burden related to employee motor vehicle accidents, IT companies carry commercial automobile insurance.
Commercial auto insurance covers fleet vehicles and third-party vehicles when the employee is determined to be at fault. It also covers the employee and third-party’s medical expenses, rental vehicles, and other expenses related to the at-fault motor vehicle accident.
Without commercial auto insurance coverage, the telecommunications company will be responsible for all of the above expenses. How long do you think a company dealing with an employee vehicle accident could remain open? Well, it would depend on the expenses and whether or not the employee was found to be at fault.
Like all companies, IT firms are oftentimes left dealing with first- and third-party claims related to employee theft. A study conducted by the Association of Certified Fraud Examiners revealed that 25% of theft in the workplace (internal fraud) cost Canadian companies around 1 million in monetary damage each year.
Fidelity bonds are designed to protect telecommunication companies and their customers from monetary damages caused by employee theft and fraud. Like cyber liability insurance, there are two types of fidelity bonds, including first- and third-party. First-party fidelity bonds cover employee theft and fraud that take place in the workplace. Third-party fidelity bonds cover employee theft and fraud that take place on third-party properties.
When an employee steals money from an employer, this is considered first-party employee theft. When an employee steals a computer from a client or co-worker, this is considered third-party theft. Most telecommunication companies tend to combine these fidelity bonds into single policies to ensure full-coverage in all situations.
GLI (General Liability Insurance) For IT Workers And Companies
In January 2018, a new study revealed that 89% of Internet users in Canada accessed the Internet on a daily basis. This number continues to grow as more and more business and personal processes are taken online. With this said, IT companies are diligently stepping up their efforts to protect their customers and workers. If this means hiring new employees and expanding into new markets, it means hiring new employees and expanding into new markets. Unfortunately, with expansions comes more risks.
To minimize your risks, GLI (General Liability Insurance) is a necessity. What is GLI? How Can it protect me from financial disaster in the event a jury finds my IT company at the fault of third-party property damage or bodily injury? GLI, general liability insurance, protects IT companies from financial loss related to all of the above. Without GLI coverage, a third-party property damage claim could send your IT company into bankruptcy.
What exactly is covered under GLI insurance? For starters, third-party injuries and property damage associated with employee negligence. In addition to these protections, GLI covers damage caused by false or fraudulent advertising. While these claims do not often apply to IT companies, there cannot be enough insurance protections in place in the event of a client injury or property damage.
Workers’ Compensation Insurance
All telecom companies operating in Canada are required to obtain and carry workers’ compensation insurance. Why is this a federal insurance mandate? Canadian officials believe workers’ compensation is the best way to protect workers. But, is it?
Workers’ compensation protects IT companies from financial losses associated with injuries and illnesses in the workplace. There is no doubt Canadian workers face many challenges and risks on a daily basis. Well, you could also say the same thing for IT companies, as they are responsible for their workers’ safety and well-being, which is where worker’s compensation coverage comes into play.
While it may sound unfathomable, workplace injuries cost Canadian IT and other companies millions of dollars each year. These expenses are related to employee accident claims and lawsuits. The most effective safety policy cannot prevent all workplace injuries. If it could, there would be no workplace injuries or illnesses. Unfortunately, this would only happen in a perfect world.
Worker’s compensation covers:
- Employee hospital, home health, and physical therapy expenses
- Employee ongoing medical care
- Employee wages during recovery
- Employee death benefits
All of these must pertain to a workplace accident.
You biggest asset in life is your earning ability. If you are unable to work, you will need to rely on either your savings or borrow money to sustain your lifestyle. When these unfortunate circumstances occur, dependents and spouses are also impacted financially and emotionally.
Disability insurance coverage will provide you a monthly income benefit, usually totaling 70% to 80% of your income, when you are unable to work for a period of time due to injury or illness.
Types of disability insurance:
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
When is GLI required in Canada?
GLI is a requirement for all Canadian companies, regardless of employee numbers, operational processes, and location. The amount of coverage will depend on location. For example, Quebec-based IT companies are required to carry at least $50,000 of GLI coverage while the federal mandate is $200,000.
To learn more about GLI, contact ProfessionalsCoverage. We can connect you to a qualified GLI agent to determine how much coverage your company should acquire. The agent can also help you customize a GLI insurance policy that is guaranteed to meet your liability insurance needs.
Need coverage in effect? Compare the market!
Helpful resources for IT professionals and their companies
- Why do I need IT insurance for my business?
- What types of insurance do I need for my IT business?
- Will I be legally required to get insurance to operate as an IT company?
- How do I get the cheapest rate possible as an IT business?
- As an online business, what liability insurance coverages will I need?
- How do I handle a lawsuit that is frivolous or completely fake?
- Want to cancel insurance for your IT Company? Here are reasons to consider!
- Using a change control board for tracking.
- Acceptable use policy – Every business needs it and here is how to write one!
- Want to start an IT consulting business? Awesome! Here is a small guide!
- How much insurance will I need to operate my tech company?
- I am a sole proprietor, how will business insurance work for my IT business?
- How do I choose the right legal corporate structure for my technology company?
Other types of IT Businesses we insure:
If your specializing is not mentioned below, have no worries. Our insurance markets can provide liability coverage for the majority of information technology related businesses.
- Telecom Cabling Installers Insurance
- Network Designer Insurance
- Cyber Security Insurance
- Business Intelligence Insurance
- Data Analysis Insurance
- Database Administration Insurance
- Web Hosting Service Insurance
- Network Security Company Insurance
- Mobile App Developers Insurance
- IT Staffing Agency Insurance
- IT Project Management Insurance
- IT Consultants Insurance
- Data Scientist Insurance
- Computer Repair Business Insurance
- Digital Marketing Agency Insurance
- SEO & SEM Consultants Insurance
- Software Developers Insurance
- Technical Writers Insurance