Is TCPA Insurance Worth It? Here’s My Take
Telephone Consumer Protection Act (TCPA) class actions are notoriously expensive to defend—even when the claims are weak. With statutory damages ranging from $500 to $1,500 per call or text and the potential for nationwide class exposure, litigation costs escalate quickly. Simply reaching or opposing class certification can cost tens, if not hundreds, of thousands of dollars. It’s no surprise that many businesses consider TCPA insurance as a safety net. But is it worth it? In my experience, not always—and here’s why.
1. The Premiums Are High
TCPA coverage isn’t cheap. Policies can easily run into the five- or six-figure range annually especially if your business engages in outbound sales, lead generation, or other high-risk activities. In many cases, that money is better spent on strong compliance and prevention strategies.
2. Coverage Is Often Limited
Many policies either exclude TCPA claims altogether or provide only partial protection, often covering just defense costs. They also tend to include high deductibles before coverage kicks in. Another important consideration: many TCPA policies won’t cover indemnification demands from vendors if those demands relate to a TCPA claim. Disputes between companies can be just as costly as the lawsuit itself.
3. You Don’t Get to Pick Your Lawyer
This one’s critical. Most policies don’t let you choose your own defense counsel in a class action. That means you might get an attorney who’s well-versed in insurance or general civil litigation, but not in the TCPA, class certification, or the specific tactics of plaintiffs’ firms that regularly bring these cases.
4. There’s Little Market Competition
Very few carriers offer TCPA-specific coverage, which leaves little room to negotiate better terms. Many policies are one-size-fits-all and may not reflect the unique risks or structure of your business.
While I’m not an insurance defense lawyer, I’ve seen enough to know what helps when a TCPA suit hits. In most cases, good compliance beats a questionable policy.
Got questions? I’m always happy to talk through what makes sense for your business.