Best of the ISP-Lists

The Wireless Dairy Queen

Members of the ISP-Wireless list discuss strategies for obtaining insurance in a market that's afraid of the word "ISP." Some strategies are more creative than others.

[May 9, 2001]

On the ISP-Wireless list in April, TJ queried,

"I'm having some trouble getting insurance for my WISP. Most agents say they won't have anything to do with ISPs. We found one that may cover us, but they are extremely expensive. Does anyone have an insurance company recommendations or advice?"

PF was the only one to claim never to have had any trouble getting insurance:

"I didn't have any trouble here in Pennsylvania. I'm using Hartford Insurance as the carrier, and I got business liability, as well as general contractor liability for doing installs. Comes to about $700 a year, total."

Others noted that they'd also had trouble getting coverage:

[AM observed] "We too have had problems getting insurance. Our current provider decided not to renew our policy for a fifth year, even though we have had no claims in five years: ISPs are considered high risk, for some reason. We have searched hard for a new policy which has riders for Internet-related issues such as copyright violations and doesn't cost much more than the old policy."

[RC added] "My insurance guy told me to find out who another ISP uses, and to go with that company. He doesn't want to deal with it, and he said no one is going to underwrite us."

Still others suggested it might have everything to do with the wording:

[JM offered] "You are a business, correct? Get business insurance for your business. There is no difference between a Dairy Queen and a WISP: they are both businesses. Just take a different approach; explain to the insurance company that you are a business that needs business insurance.

Part of the problem is convincing these morons that you are nothing more than a business. Since when do ISPs statistically have large claims with insurance companies? We have had only one claim in over four years, for a PM3 that blew up a couple of weeks ago. If one insurance company does not want to take your business, there are thousands more that will. Keep looking."

[BB agreed] "A lot has to do with the 'classification' of your company. Using simple terms such as data provider, wireless data provider, data services, etc. may prove beneficial."

—End

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