Security Company Insurance

Why Security Companies Need Their Own Type of Protection

Security alarm companies include those that sell, install, repair and monitor security alarm systems, including burglar alarms and fire alarm systems. These companies perform a wide range of activities for individuals and businesses and also face a wide range of risks that can be devastating.

Worker injuries, property damage and lawsuits can threaten your assets and the long-term financial strength of your business. Alarm company insurance can help you mitigate your risks and protect your business. But security company insurance can sometimes be difficult to obtain. You need an experienced insurance agent, such as a local Trusted Choice® agent, to help you assess your risks and find the right policies from highly rated insurers that specialize in alarm company insurance.

Security is Risky Business 

The business of helping protect others is risky. Whether you sell, install and monitor burglar alarms and other security systems or you install them as a contractor, you have a great deal of responsibility for ensuring that alarms and monitoring services perform as promised. Meanwhile, you face the potential for damaging customer property and can face property loss, theft or damage of your own.

Just a few of the risks that security companies face include the following:

  • Negligence, errors or omissions in quotes and contracts
  • Bodily injury or property damage during installation
  • Claims of false advertising, slander or libel
  • Employee theft or crime
  • Data breach or other cyber incidents
  • Employee illness or injury
  • Fire, storms, burglary or vandalism

Alarm company insurance can sometimes be difficult to obtain. When you work with an experienced independent agent, he or she can find insurance companies that specialize in security company insurance. You likely need a variety of property and liability insurance policies in order to be sure that you are protected.

Liability Insurance for Alarm Companies

Liability insurance is essential for security alarm companies. You promise to help individuals and businesses protect themselves and their property from fires, break-ins and other dangers. What’s more, you likely spend a significant amount of time working on customer property while selling and installing security systems. If you also operate a monitoring service, you are ultimately responsible for reacting to alarms and alerting authorities. If something goes wrong during any phase, people can be injured or even killed and serious property damage can occur.

Your security company insurance package may contain the following types of liability coverage:

  • Commercial general liability (CGL) insurance provides coverage for costly claims and lawsuits. If your business is accused of causing third-party bodily injury or property damage (e.g., an installer damaging a customer’s property), the CGL policy pays for attorney fees, court costs, and any settlements or judgments that you must pay. General liability insurance also provides coverage for claims of slander, libel and advertising injury.
  • Cyber liability insurance provides coverage in the event of a data breach involving your business. It helps pay for the cost of notifying affected clients as well as the cost of public relations, investigation costs and more.
  • Commercial umbrella insurance, or excess liability coverage, provides supplemental liability protection beyond the limits of certain other liability policies. This policy can be invaluable for that once-in-a-lifetime judgment rendered against you.

Companies that install burglar alarms and other security systems also may need professional liability insurance, or errors and omissions insurance. This type of coverage protects you if negligence, errors or omissions in your professional advice or services (e.g., your contract to provide security services) leads to a financial loss for a customer. For security companies, this may mean failing to identify a potential source of entry that was later breached, facilitating theft of or damage to a customer’s property. In general, professional liability insurance may provide coverage for the following types of claims:

  • Defamation of character
  • Slander and libel
  • Emotional distress
  • Nondelivery of agreed-upon products or services
  • Errors or omissions that lead to financial loss for a client
  • Professional negligence

Insurance for Your Employees

You likely have employees that perform installations and repairs. In these cases, it is likely that you provide trucks, vans or other vehicles for your employees to drive. Whether you own one truck or a fleet of vehicles, you need insurance for alarm installers. Commercial vehicle insurance covers your cars, trucks and any other vehicles you use for business. It provides bodily injury and property damage liability coverage as well as collision, comprehensive and uninsured motorist coverage.

Your commercial auto insurance can be tailored to your needs, and your coverage and premiums will be based on how your vehicles are used and who drives them. Each vehicle owned by your business or used for business purposes can be listed separately on your business auto policy, with corresponding coverage for each vehicle that can differ depending on the vehicle’s characteristics and coverage requirements.

If you have sales people or other employees who drive personal vehicles for business purposes, talk to your insurance agent about your need for nonowned auto liability insurance.

You also need workers’ compensation insurance for alarm installers or other employees who are injured on the job. Installing alarms at businesses and homes can be dangerous for employees. They may be required to climb on ladders, work on roofs or in other dangerous places, and use dangerous tools and equipment. Alarm installers may be exposed to falls, electrical currents, cuts, abrasions, eye injuries, and other unsafe or unsanitary conditions.

Workers’ compensation insurance provides coverage for medical expenses and lost wages for injured workers. Business owners are required to carry workers’ compensation insurance to protect their employees. Specific coverage requirements vary by state.

Protect your employees, and make sure you have the proper types of alarm installer insurance for all aspects of the installation process. A Trusted Choice agent can help you find the right kind of coverage for your company's needs.

Property Insurance for Alarm Companies

You likely have owned or leased office space or warehouse space as well as an alarm-monitoring center. All of these spaces are filled with valuable furniture, equipment and other business personal property that is susceptible to theft, vandalism, fires, storms and certain other causes of loss.

Business property insurance protects buildings and their contents including computers, office equipment, furniture and all of your business personal property — whether it is owned or leased — if it is damaged by fire, smoke, theft, vandalism or some other covered peril. You need this coverage to protect your expensive phone and communications equipment as well as all the other contents of your office space and warehouse space.

If you sustain damage that forces you to temporarily close or relocate, business interruption coverage reimburses you for ongoing expenses (rent, salaries, etc.) and lost income during the closure or relocation period.

You may also need additional property coverage. Talk to your Trusted Choice insurance agent about your need for the following.

  • Flood or hurricane insurance: Your basic commercial property policy does not cover flood or hurricane damage. Talk to your agent about flood and hurricane insurance if you live in an area that is prone to these events.
  • Computers and media coverage, or electronic data processing (EDP) insurance: This pays for lost data and related lost income if your computers or network are damaged by theft, vandalism, viruses or malware. It may pay for loss of data or software and physical damage to computers or hardware.
  • Employee crime and dishonesty coverage: This protects your business from the costs of theft, dishonesty and fraudulent acts committed by an individual employee or a group of employees. It provides coverage for forgery, alteration, theft, unauthorized electronic funds transfers, credit card fraud, computer fraud, money order fraud and counterfeit fraud.
  • Utility interruption coverage: This provides income protection if you are unable to operate due to a covered utility (water, electrical) interruption.
  • Inland marine insurance: This covers tools, equipment and supplies while they are in transit. For an alarm company, this may mean the components of alarm systems, tools, portable computer equipment, and other equipment or supplies that are carried to job sites in order to perform repairs or installations. While these items are in transit, they can be covered under an inland marine insurance policy.

Find Tailored Security Company Insurance Now

The key to protecting your business with a comprehensive business insurance program is to work with an experienced, independent insurance agent. An independent agent, such as a Trusted Choice agent, can work with multiple highly rated insurance companies that specialize in your unique type of business. Find a local agent who can help you with alarm company insurance today.

Now, who's ready to get their insurance problems solved?