The margin for error is slim in your business and you’re installing a variety of sensitive equipment including:
- Window/door sensors
- Alarm wiring
- Door/window locks
- Glass break/motion detectors
- Fire/smoke detectors
- Horns, strobe lights, sirens
- Control panels
- Video monitoring devices
- Keypads and remotes
- Outside lighting with infra-red motion detectors
Not to mention possibly operating a central monitoring system that must be 24/7/365.
The results from even one sensor malfunctioning could be dreadful for your customer and the reputation of your business. That’s why you have to get protected by a comprehensive professional liability insurance program designed for your business only – not a one-size-fits-all policy.
The liability protection should cover all of the basics like commercial general liability, errors and omissions, premises liability, and products/completed operations liability. You know you have to get the coverage; the question is what should the limits be?
Burglar Alarm Policy Limits
Often, liability limits will be available as follows:
This means occurrence/total.
Selecting Liability Limits
How do you select a liability limit for your burglar alarm installation insurance program? You may have heard liability limits should be what you might lose in net worth or two and a half times your net worth in case of a loss. The reality is that there is no scientific answer to this question. There isn’t even a rule of thumb!
Two issues to consider are how high a potential award might be in the case of a lawsuit against your alarm business and the length of time compensation might be awarded to the victim (if there is one). That’s why one way to get peace of mind might be to get as much liability insurance as you can. The cost for higher limits is pretty negligible compared to the extra coverage you might get with an umbrella policy.
Factors to consider include your own net worth, the worth of the business and your plans for the business down the road.
USA Business Insurance – Alarm Installation Insurance
You need to discuss all this with a trained expert in insurance programs designed for your niche. A USA Business Insurance expert can make sure you have all of the program information available to you so you can make an informed decision on the policy and the policy limits.
This also includes coverages like workers compensation, commercial auto and property. Contact us today for a no-obligation consultation regarding the insurance needs of your alarm installation company.