With so much information on the Internet about business insurance, it can be hard to keep track of how it all applies to your office telephone business.
Don't worry.We've distilled the info into the important facts phone installation businesses need to know. Here's a breakdown of the need-to-know policies and how they affect your telephone equipment installation business.
General Liability Insurance for Office Phone System Companies
General Liability Insurance pays for lawsuits your customers, clients, and other third parties file against your office telephone installation business.
In order to understand how General Liability Insurance protects your business, let's review how a lawsuit works. Lawsuits have many costs associated with them and General Liability Insurance can pay for most of these, including…
- Lawyer and paralegal bills.
- Evidence / witness / miscellaneous court costs.
- Judgments and settlements.
The last items on that list, judgments and settlements, are often the main cost of a lawsuit. Judgments are what your business will have to pay the other party (the plaintiff) after a judge or jury decides in their favor. Settlements are pretty much the same thing, but they happen outside of court. Whereas a judge may rule on a judgment, a settlement is a monetary agreement that your lawyers and their lawyers will come to. Usually, settlements occur to keep the lawsuit from going to court.
General Liability pays for lawsuits when your non-employees (i.e. third parties) claim your business…
- Injured them.
- Created an environment that led to an injury.
- Caused an advertising injury (trademark / copyright infringement, libel, slander, etc.).
- Damaged their property.
Here's an example you may face. A client hires you to install new computers at their office. They say they've been given the okay by the landlord, but weeks later the landlord is upset that you drilled through some floors and ran wires throughout the building. They claim you've damaged their property and file a lawsuit against your business. In this scenario, General Liability Insurance can cover your legal expenses.
Because your business must interact with numerous clients, vendors, landlords, and other third parties, you're exposed to general liability. Make sure your business has adequate business insurance to protect itself from lawsuits.
Property Insurance for PBX and Other Business Telephone Services
Business telephone service companies need Property Insurance to cover their lost or damaged commercial property from…
- Specified storm damage.
Property Insurance protects your equipment, supplies, inventory, offices, and other business property by reimbursing your business when this property is lost or destroyed. If a fire burns down your office, you'll have to rebuild and buy new equipment. Most small telephone installation businesses can't survive that sudden onslaught of expense.
Luckily, Property Insurance not only covers repairs and replacement equipment, but also pays for your business to relocate and set up a temporary office if your old one is destroyed. Business Interruption Coverage also pays your company's lost income, making sure that if you can't work when a fire or other covered claim destroys your building, you're still able to pay your employees and meet your other obligations.
Business Owner's Policies for Office Telephone Companies
Business Owner's Policies (commonly called BOPs) are an important insurance package for telephone installation companies that want to save money on two basic insurance policies.
Bundling General Liability Insurance and Property Insurance into one policy, BOPs cost less than the two policies would cost purchased on their own.
Unfortunately, not every small business will qualify for a BOP "discount." But many of our customers do. Our agents will work with top-rated insurance companies to see if they can get this discount for you.
How do you qualify? To purchase a BOP, small businesses…
- Must have fewer than 100 employees.
- Can't work at a large office space or be a part of a high-risk industry.
- Can't need more than a year's worth of coverage with Business Interruption Insurance.
If you meet these requirements, let our agents check to see if you qualify. When you fill out our online insurance form, we'll query insurance companies for free and send you a free quote.
Cyber Liability Insurance for Office Telephone Equipment Installation Businesses
Cyber Liability Insurance (also called Cyber Risk Insurance or Data Breach Insurance) protects your business when its customer data (or other private data) is hacked by cyber criminals.
Because they are looking for access to money, hackers often try to find SSNs, bank account numbers, credit card information, or other billing data that will allow them to steal money from you or your customers.
There are two coverage options with Cyber Liability Insurance. Your business can purchase…
- First Party Response.
- Third Party Defense and Liability.
First party response is the coverage more applicable to your business. It covers businesses whose on networks are hacked, paying for…
- Crisis management in the days after the attack to help your business respond to the attack and meet its legal obligations, while working to upset your customers as little as you can.
- Public relations responses and advertising efforts to restore your business's image and reputation.
- Investigations of the attack (to find out where your business was vulnerable and try to discover who was responsible).
- Additional employees you need for response efforts.
- Costs to contact employees, customers, and other people whose data was breached.
The second type of CLI, Third Party Defense and Liability, is usually for businesses that need coverage in case a customer's network is hacked. For instance, a software company may need this coverage in case there is a backdoor in their program that hackers can exploit.
If your telephone installation company also installs networks or performs IT services for your clients, it can be held liable when a client's network is hacked. Depending on the nature of your business, this insurance may make sense to protect you from Cyber Liability lawsuits.
Errors and Omissions Coverage for Office Phone System Companies
Errors & Omissions Insurance (also called E&O Insurance or Professional Liability Insurance) protects office phone businesses from lawsuits challenging the quality of their work.
A law firm relocates to a new office and hires a phone company to install its office phone system. In the weeks after the move, the new phone system has a number of glitches. Calls keep getting dropped. The law firm loses a prospective client during the hassle, and (being lawyers) they decide to sue the office phone business.
Errors and Omissions Insurance can cover this lawsuit and others when customers claim your business…
- Failed to deliver the goods and services agreed upon.
- Delivered poor work or unsatisfactory goods and services.
- Made mistakes.
- Was negligent in its phone installation responsibilities.
Because General Liability and other insurance policies don't protect your professional liabilities, E&O Insurance is important for small-business owners who are looking to protect themselves from the cost of a devastating lawsuit.
Workers' Compensation Insurance for PBX and Other Business Telephone Services Businesses
Because many phone businesses need to purchase it to meet their state requirements, Workers' Compensation Insurance (also called Workers' Comp or Workman's Comp) is one of the most prevalent insurance policies.
This coverage pays for many of the expenses that occur when an employee is injured or made ill as a result of their work. Workman's Comp can pay for…
- Employee medical costs (X-rays, surgeries, hospital stays, etc.).
- Income for employees who cannot work while they are injured and recovering.
- Legal defense costs for small businesses sued by their employees.
One of your employees is wiring a new phone system. If they slip off a ladder and smash their back on the edge of a desk, they could sustain serious injuries. Back surgeries take a long time to recover from. In these situations your business would be obligated to pay for your employee's medical costs and recovery time. Worker's Comp can automatically cover these bills and protect you from a lawsuit.
Each state sets its own Workers' Comp requirements, but our agents will help you meet your obligations and protect you and your employees from Workers' Comp injuries and illnesses. Find out what Workers' Comp requirements are where you live.
Insureon: Custom-Built Small Business Insurance for Office Telephone Installation Companies
For a free quote on business insurance for office telephone companies, fill out our simple insurance application. Usually, our agents can send you a custom-built insurance quote in 10 or 15 minutes. Contact insureon for free, no-obligations insurance quotes from top-rated insurance companies.