Alarm Installer Insurance
Alarm installers have a lot on the line. The last thing you want is for your insurance to have a lapse at the wrong time. If the worst were to happen, you want to know that your family is taken care of. And a lot of insurance companies will require a security license as part of the hiring process. Insurers know how risky this job can be, which is why they offer some particular policies that’ll step in if anything goes wrong.
The Importance of Alarm Installer Insurance
Licensing requirements for alarm installers vary by jurisdiction. But each place has its process for becoming licensed, which can be found through your local law enforcement officials. It often requires an application, proof of passing a criminal background check, work history and documentation proving the applicant has completed the required amount of hours in related training.
Once you’re licensed, you can apply to insurance companies that specialise in alarm installer coverage. Most of these are for-profit companies specialising in alarm policies, which means that there are plenty to choose from.
What Does an Alarm Installer DO?
An alarm installer is someone who gives you a quote. You decide if you want them to go ahead and install the system and if so, they work hard to get it done. After they’ve completed the job, it’s up to you to make sure they did what they said. An alarm installer policy protects you after the fact when something goes wrong with your system. Liability insurance is much more involved and covers situations where you are forced to deal with someone else’s wrongdoing.
What Types of Alarm Installer Coverage Are There?
There are three types of alarm coverage available for installers; basic, standard and custom. Insurers offering these policies typically require an alarm installer license or provide a way to obtain one quickly. Basic coverage covers the replacement cost of installed alarms. This could be a new set of pre-armed batteries for your system, a replacement keypad or a replacement touch screen in case it is lost or stolen. Basic coverage also covers deductible costs for accidental damage to the border security barriers and alarm panels, which the homeowner will have replaced.
Standard coverage extends basic coverage to equipment theft, vandalism and loss/damage to keys and battery packs. There is an option to extend standard coverage to accidental damage to the border security barriers and alarm panels.
Custom coverage is the most comprehensive. It pays for all of the items listed under basic and standard coverage, plus accidental damage/loss of non-alarm business equipment, data loss due to a cyberattack, different types of vandalism – such as graffiti – and even additional repair costs for a natural disaster. Custom coverage also lists the amount of money paid out for lawyer fees, business interruption and more.
The third type of coverage – for specialised alarm contractors – is an option and can be helpful for companies who work with a lot of off the shelf alarm systems. It pays for inspections and monitoring of alarm systems, as well as replacement costs.
What Should You Consider When Purchasing Alarm Installer Insurance?
The one thing to keep in mind is the deductibles. These are the amount of money that can’t be recovered by your insurer, regardless of how much your policy pays out. Many insurance companies will set these amounts between 1% and 3% of the total value of your claim. That means if you have £6,000 worth of coverage for an alarm system that cost you £10,000 to install, then your deductible could come out to be up to £100-£300 for repair costs.
If you’re already licensed or insured, you can move up to basic coverage with little additional work required. Basic coverage often serves as a great stepping stone toward becoming licensed and insured if you do not have insurance. While some insurance companies may require a high-level security license to get essential and standard alarm coverage, custom policies typically allow off-the-street applicants to get the most comprehensive coverage for alarm installation.
Issues With Alarm Installer Insurance
The problem with alarm installers is that they’re often exempt from licensing requirements, despite installing pretty high-risk systems—including fire alarms and burglar alarms. The North American Installation Association (NAIA), which represents installation companies in the U.S., Canada, and Mexico, says 75% of its members fall under this category. This means that it is essential to be licenced to reduce insurance premiums and such that all steps are taken towards safety.
Although some insurers require applicants to have a security license, most do not. Some insurers offer their protection products as a means of screening for employees before hiring business owners. Suppose you’re an alarm installer and you’re interested in protecting yourself from an insurance lapse. In that case, you should talk with your local law enforcement and the alarm installer professional associations to see what insurance coverage options they provide and how their policies can help meet your needs.
It is essential as an alarm installer that you obtain the right coverage to ensure that your family would be taken care of if the worst were to happen. It also gives peace of mind that your business is covered if any equipment is stolen or damaged in the line of duty.
Read more about what kind of business insurance you need here.
Other useful links about business insurance:
Public Liability Insurance
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as: