The global communications services industry is rapidly growing and evolving, with the implementation of 5G networks, automation, and artificial intelligence across businesses. At the same time, communications services companies face intensifying competitive and regulatory pressures as they vie for the attention of consumers. Cybersecurity is another major concern, as new technology implementation and expansion open companies up to further vulnerabilities.
With this extensive amount of change comes a great deal of increased risk. You should ensure that your company is capable of adapting quickly and positioned for continued growth and business viability.
Our global Communications Services Practice can help your company identify, quantify, and manage your risk more effectively. Our dedicated team of global risk advisors and insurance specialists has extensive industry experience and can help guide you through even the most complex risk management scenarios.
The communications services industry includes companies across a broad range of technology modalities, including major internet service providers, wireless providers, broadband companies, cable companies, and more.
As social media platforms continue to grow and merge their service offerings with other providers, there is an increasing degree of crossover between the communications services industry and communications technology.
Cybersecurity, business disruptions, and climate change are some of the major risks facing the communications services industry today.
Cybersecurity exposures have dramatically increased in recent years, as the pace of technological implementation and widespread usage has greatly outstripped the pace of security measures intended to keep users’ information and the networks they rely on secure and resilient to outages. As more and more of our lives involve technology, cyber resilience will be a major focus of risk mitigation efforts for communications services companies.
Communications services companies are also finding themselves more vulnerable to services outages from natural disasters, power and other infrastructure failures, and technology failures. No matter the cause of an outage, communications services companies – and the vendors they rely on – can face contractual liabilities and reputational risks.
Related to this would be climate change risk. The increase in frequency and intensity of many wildfires, floods, and tropical and winter storms that can compromise transmission equipment means that there can be increased repair costs to contend with, but also greater investments needed to improve the resilience of vital infrastructure.
As communications services companies’ offerings continue to grow and expand, so does their need for a diverse range of insurance coverage. Risks to be managed range from protecting employees, operations, and property – whether corporate offices, data centers, transmission towers, or satellites – from natural hazards, cyberattacks, and other disruptions to mitigating exposures due to lapses in professional duties.
Depending on the exact service offerings and location of assets of a communications services company, insurance coverage might include property and business interruption, commercial auto insurance, errors and omissions (E&O), directors and officers, and cyber.
As a result of the constantly-evolving nature of this industry, risk management strategies, including appropriate insurance coverage, may vary over time. Having a trusted advisor at your side, such as Marsh, can help you navigate your dynamic risk landscape.