Spring Is in Full Swing.

Telcom Insurance Group remains committed to protecting telecommunications companies like yours, not only providing comprehensive coverage but valuable industry insights. Whether you’re brushing up on the basics or learning something new, you’ll find a wide range of topics below – from on-site safety to claims questions.

Presidential Matters

Keep Calm. Trust Telcom.

Peter Elliott, TIG President & CEO

Insurers take calculable risks and charge premiums to cover expected losses – although sometimes a severe event results in losses greater than anticipated. This unpredictability is just one factor that makes insurance a difficult business. If every type of loss was easy to calculate accurately, the whole world would invest in or own insurance companies. But the fact is, there's always a chance that any given year’s losses and expenses will exceed the premium.

There are several circumstances that may cause larger than anticipated insurance losses when a telecom is the insured. These events often make headlines, and many have also been discussed in past newsletters – such as severe weather events, wildfires, nuclear jury verdicts, and the inherent challenge of construction work. While none of these threats is new, the severity of damage, especially for those involving weather – be it from the increasing force of the storms or more densely populated cities – has led to larger losses than in the past. This unfortunate fact makes these instances more difficult to model accurately, as shown below.

History even tells us that, in general, weather losses are getting worse. What is the answer for insurers trying to generate profit as weather worsens? Insurers will adjust rates as best as they can, and also try to balance the property risk with other less volatile types of insurance. The insurer that has only the claim loss leading lines of insurance will experience the greatest losses and need to focus solely on rate adequacy.

We have learned that insurance works best when the pooling of all lines and risk types go into the fund that supports claims. But this is a concept that sometimes insurance agents fail to point out when presenting quotes to customers. They instead focus on premium savings of the moment on individual coverages and not the long-term impact of how it is placed. Sure, you may save a few dollars a year by moving your most profitable line of coverage to the lowest cost provider, but keep in mind that that profit supported and made the loss leading coverage more affordable. In time, the rates and premium will go up on the unprofitable and your total spend will often be higher. What ultimately happens when insurance portfolios are separated? The insurance marketplace is destroyed by agents who cherry-pick certain lines and split coverage up.

The importance of unity in the market has never been more evident. You may have heard that long-time telecom insurance provider National Farmers Union is exiting the market. I cannot speak to their reasons, but would like to emphasize that this is great opportunity to check out what Telcom Insurance Group has to offer. We work hard to build a marketplace that benefits telecom companies in the long run, instead of making rash decisions that have fleeting perks but disastrous impacts down the road.

To learn more, contact a member of the Telcom team. We’re always here to help, and we can’t wait to connect with you!

Read More!

If you are interested in registering to attend the 2023 Risk Management Conference (RMC), click the button below to register. We would be happy to see you there! Once you have filled out the registration form, please email it to our team member Marilyn at

mab@telcominsgrp.com

Safety Matters

Outdoor Tornado Safety Tips

Marilyn A. Blake, AU, CRM

If you’re in a vehicle, do NOT attempt to outrun a tornado. The least desirable place to be during a tornado is in a motor vehicle because cars, buses, and trucks are easily tossed by tornado winds.

Here’s what to do in several scenarios:

Never use a tree for shelter and be sure to stay away from highway overpasses and bridges. Your choice of whether to stay in your vehicle should be driven by your specific circumstances. The safest option remains getting to a secure building with a basement or safe room, which, when working in the field, may be in the house of the customer that you’re doing the install for.

Remember, being prepared is key. Watch the forecast carefully if there is the potential for severe weather and don’t venture far from shelter if tornadoes are imminent. To learn more, contact us today!

Safety Matters

March Spotlight: Ladder Safety

Craig Rapp, Risk Manager

Last quarter, our Safety Matters article covered slips, trips, and falls – with just a short reference to ladder safety. Because March is National Ladder Safety Month, now is a great time to dive deeper. Ladder Safety Month is promoted by the National Safety Council and sponsored by The American Ladder Institute (ALI), two organizations committed to workplace safety.

With OSHA issuing almost 18,000 ladder-related violations between 2017 and 2021, the seriousness that regulators place on ladder safety is evident. Of all violations, the top 10 fell under the construction standard, 29 CFR 1926.1053. The data presented and lessons learned translate directly to our industry, so check out this short rundown.

While this data is eye-opening, it also leads to further questions: How many cases were not observed? How many times was a dangerous accident narrowly avoided? The number must be staggering.

We use ladders every day in our industry. Whether our employees are conducting an install at a customer’s home, climbing a utility pole, or fixing a light in a service area, ladder use is prevalent in telecommunications.

To protect your employees and lower the potential for injury, we recommend designating a competent person to regularly inspect each ladder within your inventory. By definition, a competent person is “one who is capable of identifying existing and predictable hazards in the surroundings or working conditions which are unsanitary, hazardous, or dangerous to employees, and who has the authorization to take prompt corrective measures to eliminate them.” 29 CFR 1926.32(f). By way of training and/or experience, a competent person is knowledgeable of applicable standards, is capable of identifying workplace hazards relating to the specific operation and has the authority to correct them. Having your competent person keep accurate and up-to-date records on ladder inspections will go a long way toward keeping your staff and equipment safe.

Ladders are common and integral to our work. If we use them with caution and treat them with respect, they will serve you and your employees well. We are here to help with any of your insurance or risk management needs, so don’t hesitate to contact Marilyn Blake at mab@telcominsgrp.com or 800-222-4664 x1085. Or contact me, Craig Rapp at csr@telcominsgrp.com or 903.424.7453 for any loss prevention or safety help

Claims Matters

Workers Compensation: Lost Time Claims & Return-to-Work Programs

Rebecca (Beckie) Menard, Claim Specialist

Your employees are one of your greatest assets. As an employer, Workers’ Compensation coverage is not only required but is an essential component of your risk management program. This specific insurance policy provides coverage for accidents or injuries that arise in the normal course of business operations.

In addition to making sure adequate coverage is in place, some thought should be put into preparing for potentially serious injuries – ones that may take your employees out of work. Establishment of clear and concise job descriptions and a return-to-work program help ensure you’re equipped to handle these circumstances, before they occur.

Whether your company currently has an established return-to-work plan in place or an informal version of a plan, set aside a few minutes with your management team or HR Department to further discuss this topic. The benefits, if and when the need arises, will be well worth the time invested.