Alarm Installer Insurance

As an alarm installer, securing the right business insurance is key to safeguarding your operations. Alarm installer business insurance typically covers a range of risks specific to your trade, ensuring you're protected from potential liabilities.

The NAICS code for alarm installers is 561621, which classifies you under "Security Systems Services (except Locksmiths)." This classification includes the installation, repair of burglar and fire alarm systems. Your insurance policy can cover damages to client property during installation, legal fees from lawsuits, and accidents involving your equipment or vehicles.

General Liability

Property Coverage

Auto Insurance

Workers Compensation

Professional Liability

Business Owner’s Policy (BOP)

A Business Owner’s Policy (BOP) combines general liability and property insurance into one convenient package. It’s perfect for alarm installers who want all-around protection.

Coverage:

Property Insurance: Covers the physical assets of your business, like office space, equipment, and inventory.
General Liability: As mentioned earlier, it covers claims of bodily injury or property damage.
Business Interruption: If something like a fire or flood disrupts your business, BOP can cover lost income while you’re out of commission.

Workers' Compensation for Alarm Installers

Workers' compensation is not just a good idea—it’s legally required in most states. It covers medical bills and lost wages if one of your employees gets injured on the job. Since alarm installers often work on ladders and in hazardous environments, this protection is crucial.

Claim Example: An installer fell from a ladder while mounting a security camera and broke his arm. Workers' comp covered his medical treatment and compensated him for the time he was unable to work.

What Else Do Alarm Installers Need?

Besides the essentials, your alarm installation business might need other coverages depending on the services you offer. These could include:

Professional Liability Insurance: Covers you if a client sues over a mistake in your work, like a security system malfunction.
Commercial Auto Insurance: If your team drives company vehicles to job sites, this coverage protects against accidents, theft, and damage.
Umbrella Insurance: For extra coverage, umbrella policies kick in when a claim exceeds the limits of your standard policies.

Alarm Installer Insurance Claim Examples

Here are some unique claim examples for alarm installers:

Bodily Injury: A client trips over an unsecured wire during an alarm system installation.
Coverage: General liability insurance would cover medical expenses and any legal fees.
Importance: Helps avoid out-of-pocket costs for injuries that occur on the job site.

Property Damage: An employee accidentally drills through a water pipe while installing an alarm system, causing water damage.
Coverage: The property damage portion of your general liability policy would cover repair costs.
Importance: Prevents costly repairs from draining your business finances.

Business Interruption Loss: A fire at your business premises halts operations for several weeks.
Coverage: Business interruption insurance under a BOP would cover lost income and ongoing expenses.
Importance: Ensures your business can recover financially during periods of downtime.

Business Personal Property Loss: Theft of tools and equipment from your company vehicle.
Coverage: Business personal property insurance would cover the replacement costs.
Importance: Ensures you can replace essential tools quickly, minimizing disruption to your business.

How Much is Alarm Installer Insurance

The cost of alarm installer insurance varies based on factors like business size, location, and coverage needs. Rates depend on your claim history, the types of systems you install, and the value of your equipment. Below is what we may be able to offer based on these factors. (I will enter the rates myself).

Q&A for Alarm Installer Insurance

We’re big believers in keeping things simple, so ask us anything and we’ll answer honestly and without the jargon.

What is an insurance premium?

An insurance premium is the amount of money you pay to the insurance company for your business insurance policy. Premiums are typically paid annually, semi-annually, or monthly, depending on the terms of your policy.

What is business interruption insurance, and do I need it?

Business Interruption Insurance covers lost income and operating expenses if your business is forced to close temporarily due to a covered event, like a fire or natural disaster. It’s particularly important if your business relies on physical operations that could be disrupted.

What to know before buying alarm installer insurance?

Obtain all your insurance requirements from your contractors, subcontractors, vendors, clients, state or local government office, or whoever wants to check your insurance, before you purchase this insurance. This is to make sure all your requirements are addressed.

Can I change my Policy?

It depends, for example, you can make address changes or contact information changes, and in some instances, limit changes. It's best to contact your agent to find out.

Are independent contractors covered under my business insurance?

Independent contractors are typically not covered under your business insurance policies, including Workers' Compensation. However, you may still be liable for their actions while they are working on your behalf, so it’s important to ensure they have their own coverage.