Insurance for Communications & Technology Companies

Communications and technology (CommTech) companies face a number of challenges, not least of which is the constant need for innovation to satisfy evolving consumer demand and survive in a highly competitive marketplace.

That competition has led many CommTech companies to diversify into multiple sectors in recent years, something that brings significant opportunities, but also risks. Alongside this is an increase in mergers and acquisition (M&A) activity in the sector; a trend that is likely to continue.

CommTech companies manufacture many of their products in emerging markets, leaving them vulnerable to risks around extreme weather and political volatility. They also tend to have long and complicated supply chains, over which they have limited visibility. Personal data is another hot topic, with constant changing data protection regulations across the globe. The data that companies hold and what they do with it is increasingly coming under the microscope, putting organisations under pressure to comply with new rules.

The good news about all of these challenges is that there is a lot that companies can do to mitigate them through risk transfer solutions. JLT's global CommTech practice has been helping clients to identify and manage their exposures since 2004.

WHAT WE DO

Communications and technology what we do

We provide insurance broking services to CommTech companies around the world and have experts across the entire spectrum of risks faced by our clients. From physical damage, liability, first and third party cyber and financial risks, to political violence and people risks, our team can assist in placing specialist policies to meet your needs.

Our wide-ranging experience means that we are well placed to help companies with operations that span multiple sectors, including (but not limited to): software and app developers, telecommunications, consumer electronics, social networking companies, sharing economy, IT services, technology manufacturers and semiconductors.

Communications and technology what we do

We also have a proven track record of settling large, complex claims suffered by our clients. Our claims experts sit alongside the account teams meaning that they have an excellent grasp of our clients' businesses that they can then apply throughout the claims process.

  

FAQs

Placing insurance policies for our clients is just part of what we do. A strong understanding of your risk profile helps to ensure the policies we place are suitable both in scope of coverage and limit. We have numerous experts to help clients quantify their risks and can offer service such as:

  • Business interruption reviews / post loss forensics
  • Business continuity management
  • Analytical services, including cyber/E&O model
  • Supply chain risk management
  • Enterprise risk management
  • Risk and loss control services

We have been through numerous mergers and acquisitions (M&A) with our clients so are well versed in this area. In fact, over 90% of public companies that have completed or announced an acquisition have been on the receiving end of a D&O claim.

Pre-acquisition, our specialist M&A team can assist with due diligence and place reps and warranties policies tailored to the sale and purchase agreement to aid the selling/buying process. Post-completion, we will ensure that new acquisitions benefit from your insurance coverage from the moment they are acquired. We will conduct a full review of any previous insurance policies held by the new acquisition and identify any gaps in coverage that may exist in your program, and help with placing run-off insurances where required to cater for any past liabilities.

D&O, E&O and cyber claims continue to be the headline insurance risk for companies in this sector. These risks emanate from numerous circumstances, which can include M&A, IPO’s, global footprint, large stock drops, and bankruptcies, amongst many others. Also, high profile E&O and Cyber events, such as Yahoo and Facebook, can now lead to D&O losses for the insurance carriers.

In addition to these claims, the traditional property damage / business interruption claim continue to pose risks to the insurance carriers especially for multinational companies.

WHY JLT

Our CommTech team has the experience and expertise to offer you not just risk transfer insurance products, but a range of associated service to help you view your risks holistically. We are different because:

  • We have the right expertise no matter the subsector of tech, our brokers have the relevant experience
  • It is not enough to accept market-standard contract language, we continue to push carriers to provide market-leading coverage on behalf of our clients
  • We will provide you with a dedicated team of specialists who are focused on your sector, structured to provide you with expertise in all of the areas that you need cover
  • We provide a single point of contact to take the stress out of dealing with your global insurance programmes. Our multi-lingual team will coordinate between you, the insurer, your local operations and where relevant our network spanning over 135 countries
  • We have what we believe to be the best industry specific claims teams in the market. It’s not enough to simply offer a reactive, post loss claims service. Supporting clients to manage loss ratios and loss avoidance is equally paramount. We offer pre-loss scenarios and stress testing policies which are highly valued by many of our clients
  • As risk develops for our clients, they continue to ask for best practices consulting to determine how much in limits should they purchased (especially for cCyber/E&O related claims). Our JLT Analytics and Consulting colleagues have combined their experiences to help develop market-leading models that help drive our companies’ insurance-purchasing decisions.

INSURANCE SOLUTIONS

No two companies in the CommTech sectors are the same so risk profiles tend to differ from firm to firm. Our team has access to a suite of products that your company might require, including:

Protects your buildings and other physical assets from damage and any resultant loss of revenue or increased costs of working as a consequence of that damage. Some examples of extensions explored by our clients include Contingent Business Interruption (supply chain risk) and additional cover for overhead Transmission and Distribution lines.

Cover for your legal liability in the event damage or injury being caused to a third party. Very specific to the CommTech sectors is an extension for electromagnetic fields (EMF) losses which can be obtained if required. Products liability is equally important for our clients who manufacture equipment or components. Linked to this, product recall is also a key area.

Cover for your legal liability in the event that you fail to fulfil a service or are negligent in the delivery of that service. Many of our clients also combine cyber coverage into their technology errors and omission (E&O) policy for coverage certainty should there be a loss that falls between the two covers.

Particularly important for CommTech companies, cyber policies can protect you against both third party claims arising from cyber related incidents and first party costs you incur in putting these incidents right. Cyber business interruption is also a key area to explore to protect revenue that could be impacted following a cyber incident.

Such as directors’ and officers’ liability, crime and employment practices liability are not unique to CommTech clients, but are extremely important and often very high up the agenda of management boards.

Again, whilst not specific to CommTech companies, insurance policies such as personal accident and travel and kidnap and ransom are key to our clients. People are the most important asset of any business so protecting them is crucial.

Our approach is to tailor these products to ensure they cover the unique risks you face as a business. We do not believe in off the shelf products and will always look to use JLT form wordings where possible.

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