So your security alarm company sells, installs, repairs, and monitors burglar and fire alarms for homes and businesses to help protect from devastating events. But who protects your company? What happens if an alarm doesn’t work? Or work fast enough? Or what if one of your employees gets injured on the job? Or your products are stolen? The risks that threaten a security alarm company can leave you open to some serious financial problems if you’re not properly protected.
Fortunately, our independent insurance agents are here to eliminate the hassle of searching for the right insurance on your own by walking you through a hand-picked selection of top policies to cover both your business and your employees. But first, let’s talk more about the protection you need and why you need it.
What Risks Do Security Alarm Companies Face?
The business of helping protect others is risky. Whether you sell, install, and monitor alarm systems or you install them as a contractor, you have a lot of responsibility to your customers to make sure they work 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 alarm companies face include:
- 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
Security alarm company insurance can sometimes be tough to obtain. When you work with an experienced independent insurance agent, they can find carriers that specialize in security company insurance. You likely need a variety of property and liability insurance policies in order to be sure that you’re protected, but don’t worry, we’ll help take care of all of that.
Why Do Security Alarm Companies Need Liability Insurance?
Liability insurance is an absolute must-have 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 probably spend a significant amount of time working on customer property while selling and installing security systems. Plus, if you also operate a monitoring service, you’re ultimately responsible for reacting to alarms and alerting the proper authorities. If something goes wrong during any phase, people can be injured, killed, and serious property damage can occur.
To protect your company, your insurance package should contain:
- Commercial general liability (CGL) insurance: This 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 have to pay. General liability insurance also provides coverage for claims of slander, libel, and advertising injury.
- Cyber liability insurance: This provides coverage from data breaches involving your business. It helps pay for the cost of notifying affected clients, public relations costs, investigation costs, and more.
- Commercial umbrella insurance, or excess liability coverage: This provides supplemental liability protection beyond the limits of certain other liability policies. All it takes is for one once-in-a-lifetime judgment against you to go beyond your liability limits and ruin your business. This additional protection could be a life saver.
- Employment practices liability insurance: This covers you if an employee sues you for discriminatory employment practices.
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, leading to 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
- Non-delivery of agreed-upon products or services
- Errors or omissions that lead to financial loss for a client
- Professional negligence
What Employee Insurance Does My Security Alarm Company Need?
You likely have employees that perform installations and repairs. In these cases, it’s likely that you provide trucks, vans, or other vehicles for your employees to drive. Whether you own one truck or a whole fleet, 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 vehicle insurance can be tailored to your business’ unique needs, and your coverage and premiums will be based on who drives the vehicles and why. Each vehicle owned by your business or used for business purposes can be listed separately on your policy, with corresponding coverage for each vehicle that can be modified 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 independent insurance agent about your need for hired and non-owned auto liability insurance.
Installing alarms at businesses and homes can be dangerous for employees. They may be required to climb ladders, work on roofs, or in other dangerous places. Alarm installers may be exposed to falls, electrical currents, cuts, eye injuries, and other unsafe or unsanitary conditions and 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, though coverage requirements vary by state.
Property Insurance for Alarm Companies
You likely have office and warehouse space, owned or leased, and 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 other losses.
Business property insurance protects buildings and their contents including computers, office equipment, furniture, and all of your business personal property — whether it’s owned or leased — if it is damaged by fire, smoke, theft, vandalism, or some other covered disaster. You also need this coverage to protect your expensive phone and communications equipment that keeps your customers protected.
If you sustain damages that force 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, like:
- Flood or hurricane insurance: Your basic commercial property policy does not cover flood and may not cover you for hurricanes if you’re located near the coast. Talk to your agent about separate flood and hurricane insurance if you live in an area that’s 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 also pay for data or software loss and physical damage to computers or hardware.
- Utility interruption coverage: This provides income protection if you’re unable to operate due to a covered utility (water, electrical) interruption.
- Inland marine insurance: This covers tools, equipment, and supplies while they’re in transit or off premises. For an alarm company, this may mean alarm system components, tools, portable computer equipment, and other equipment or supplies that are carried to job sites for repairs or installations.
Finding and Comparing Security Alarm Business Insurance Quotes
Our agents will review your needs and help you evaluate which security alarm business insurance coverages makes the most sense. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up — in a comprehensive and affordable way.
What's So Great About Independent Insurance Agents?
Independent insurance agents excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.
They’re also there to help make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.