We see this question from time to time as one of the nuts and bolts parts of building a new network: where does insurance come into play? New infrastructure is, after all, expensive.
Doug Dawson answers this question clearly and comprehensively in a recent post. The short of it is that in the vast majority of instances, damage for the conduit and fiber portions of the network get covered either by FEMA or the utility provider that owns the poles. This is, he notes, separate from the buildings and other non-cable/conduit portions of an outside plant, which are often covered by some sort of insurance.
There are certainly insurers that will do it, but Doug advises thoughtful cost accounting before making a decision. It’s good advice, especially since it looks like at least some of the insurance industry is eyeing the billions in new federal infrastructure money as a way to diversify their portfolios.
One thing that Doug’s piece doesn’t cover is security threats, which have certainly been on the rise over the last few years. As our electric and information grid infrastructure continues to grow closer and bad actors see opportunities to go after small ISPs with fewer resources, the cost of disruption and downtime may change the motivation for network insurance.
Watch the Episode 39 of Connect This! to hear the panel talk a little more about insuring broadband networks.