2014

Vital Insurance Policies for Telemarketing Companies

Telemarketing companies have a variety of liabilities and will need a variety of insurance policies to protect their business from many of the common lawsuits and other costly situations they can face.

The vital insurance policies for telemarketing companies are…

General Liability Insurance for Telemarketers and Call Center Service Businesses

General Liability Insurance is one of the initial insurance policies that telemarketers and call centers need to purchase to cover their third-party liabilities.

Third-party liabilities are the situations and interactions that can lead to lawsuits from people not employed by your business, including…

  • Customers.
  • Vendors.
  • Clients.
  • Contractors.
  • Mail carriers.
  • Deliverymen.
  • Service technicians.

This vital business insurance pays for lawsuits when third parties sue your telemarketing business over…

  • Physical injury (e.g., a deliveryman falls on your property).
  • Advertising injury (e.g., your business runs an ad campaign that uses a competitor's trademark).
  • Damaged property (e.g., when meeting with a client, an employee knocks over their computer).

Lawsuits like these can cost your business thousands and thousands of dollars. Fortunately, General Liability Insurance can cover your business's legal expenses, including…

  • Lawyer's bills.
  • Paralegal costs.
  • Witness expenses.
  • Evidence fees.
  • Settlement (payments of "damages" to prevent lawsuits from going to trial).
  • Judgments (amount awarded to the other party by a jury or judge).

By paying for these major components of a lawsuit, General Liability Insurance can prevent your business from having to file for bankruptcy or go into debt when faced with a major legal bill.

Property Insurance for Contact Center, Telesales, and Call Center Customer Service Businesses

Your telemarketing business has computers, headsets, phone equipment, office space, and other commercial property that you'll want to protect with Property Insurance.

This policy insures your business's…

  • Equipment (computers, electronics, tablets, etc.).
  • Furniture and furnishings.
  • Buildings and office space.
  • Supplies.
  • Inventory.

Property Insurance can reimburse your business when the property listed above is lost or damaged by…

  • Covered weather events (typically, this includes winter storms, wind storms, and covered rain storms).
  • Tornadoes.
  • Fire.
  • Theft.
  • Vandalism.

Here's how Property Insurance could protect your business. A fire breaks out at your call center, destroying your computers, phones, and office space. The cost to replace everything and repair the damages to your building is $200,000. In addition to that cost, your business is unable to generate new income because you have no place to work and no equipment to work with.

In this situation, Property Insurance can pay the costs of replacing lost equipment and rebuilding your offices. In addition, many insurance policies include Business Interruption Coverage, which can pay to relocate your call center and pay the normal income you would make during the interim when you had to shut down.

Property Insurance helps your business get through difficult and costly scenarios where your property is lost or damaged by a covered claim.

Business Owner's Policies for Telemarketers and Call Center Agents

Business Owner's Policies (or BOPs) are one way telemarketers can save money on their business insurance. BOPs package General Liability Insurance and Property Insurance into one policy that often comes at a discount.

The reason this insurance costs less is because it is special small business insurance. Larger businesses and businesses with greater liabilities don't qualify to purchase this less-expensive coverage.

Like a good driver discount, if your business has lower-risk potential, insurance companies may reward it. To qualify, a telemarketing business…

  • Can't want more than 12 months of Business Interruption Coverage.
  • Can't have more than 100 telemarketers or other employees.
  • Can't work in a higher-risk industry.
  • Can't have a large call center office space / building to insure.

Fill out our online insurance form, and our agents will check to see if your business can get this discount. We'll send you a free, no-obligations insurance quote on this and other insurance policies you're interested in.

Cyber Liability Insurance for Telemarketing Companies

Cyber Liability Insurance (also called Cyber Liability Insurance or Data Breach Insurance) pays for many expenses your business has after it is hacked by a cyber criminal.

Someone may hack into your network or computers looking for data that will lead them to bank account or credit card information. Telesales businesses have massive amounts of data on purchases by all sorts of customers. When their networks are hacked, thousands of customers can be exposed.

Cyber Liability Insurance with First Party Response pays for your response to situations like this when your computers are hacked. This insurance pays for…

  • Crisis management consultations and additional employees to help you respond to the attack.
  • Public relations campaigns and new advertising to restore your call center's reputation after the attack.
  • Reimbursements for cyber extortion attacks from hackers.
  • Expenses to contact anyone whose data may have been exposed.
  • Investigative resources to help determine who was responsible for the attack and what area of your cyber security was weak.

For most call centers and telemarketing businesses, First Party Response is sufficient coverage. However, there's an additional coverage option that may make sense for IT-related businesses. Third Party Defense and Liability is for businesses that could be sued by when their customer's computers are hacked.

IT call centers may need Third Party Defense and Liability. This insurance pays for lawsuits when your customers sue your business for advice or services that lead their computer to be vulnerable to a cyber attack.

Errors and Omissions Coverage for IT-Call Centers and Other Telemarketing Businesses

Errors & Omissions Insurance (also called E&O Coverage or Professional Liability Insurance) is an important part of your business's protection from liabilities. This insurance covers your business's professional liabilities, when clients sue your business over the work it does.

Errors and Omissions Insurance lawsuits include claims that your business…

  • Failed to achieve the telesales numbers your client expected.
  • Delivered shoddy or incomplete telemarketing work.
  • Made mistakes or errors in its work.
  • Was negligent in its professional duties.

Let's say your business is hired to run the telesales for a new Internet service company that started up in your area. If their sales don't match expectations, they could sue your business. If one of your employees offers bad advice or upsets a client's customer, your business could face the liabilities.

Workers' Compensation Insurance for Contact Center, Telesales, and Call Center Customer Service Business

Often a state-required insurance for employers, Workers' Compensation Insurance (also known as Workers' Comp or Workman's Comp) protects your business from workplace injuries and accidents.

Workman's Comp can pay for…

  • Medical invoices for employees after an on-the-job illness or injury.
  • Medical leave for employees who cannot work post-accident and need time to recover.
  • Legal expenses for employers who are sued by their employees over a Workman's Comp claim.
  • Funerals for employees killed at work.
  • Support income for dependents of employees killed at work.

Even if your employees are sitting at their desks for most of the day, Workers' Comp claims happen regularly. If an employee develops carpal tunnel syndrome, surgery and paid leave could cost your business tens of thousands of dollars. That doesn't even include the cost of a lawsuit.

Protect your employees and yourself from expensive injuries, with Workers' Compensation Insurance.

Insureon: Custom-Built Small Business Insurance for Telemarketers and Call Center Agents

Our agents will customize an insurance policy to fit the needs of call centers and telemarketers. For a customized small business insurance quote, submit our online application, or contact insureon today.

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