Why is specialist insurance for alarm installers so important?

Without the right insurance, you could be one bad installation away from bankruptcy.

If you’re a professional alarm installer, securing the appropriate insurance is a critical necessity to safeguard both yourself and your business. It guarantees your protection, offering you peace of mind in the event of unexpected mishaps or setbacks so you can focus on delivering for your clients.

So, if your days are filled with jobs like setting up bespoke home security systems, installing alarms for other businesses, or devising intricate security for entertainment venues, it’s vital to consider bespoke alarm insurers insurance for protection in case of unexpected incidents. As an Alarm Installer, you constantly handle diverse assignments.

At Alarminsure we take pride in providing some of the most comprehensive policy choices available.

We know that it is important for installers involved in performance-critical activities like installing alarms and security systems to have efficacy insurance (sometimes called inefficacy or failure to perform insurance) which is why we offer efficacy insurance as standard with our specialist security insurance, also allowing you to join trade associations.

Despite your best efforts accidents will happen, which if left uninsured could result in a claim being made against you and if it was successful, you could be left with a large bill to cover.

We know that buying insurance can be confusing and stressful which is why we aim to take away the stress and make the process as smooth as possible, we will give you advice so you don’t have to work out what cover you need or how much, we’ll give you a comprehensive and clearly written policy wording and documents, we will support you if and when you need to make a claim.

How do I know what cover I need?

If you’re an alarm installer determining the right insurance cover for your business involves several steps to assess your specific risks and needs. Here’s a quick list to help you identify the insurance cover you need:

What Are Your Business Activities: Who are your clients, what do they do, what services do you deliver for them and where do you deliver them? Thinking about this and being able to tell your insurance broker will help them assess the risks you face.

Regulatory Requirements: Do you need a minimum level of cover to meet the requirements of an industry regulator or contractual requirements? If you do, this will show to the broker the minimum level of cover you need.

Risk Assessment:List any potential risks and liabilities associated with your business activities. Think about scenarios where things could go wrong, such as accidents during installations, system malfunctions, property damage, or data breaches.

Claims History:If you’ve had claims in the past, you’ll need to share the details of these with your broker so it’s helpful to have this information ready including any steps taken to reduce the risk of similar claims happening again.

It is useful to remember that your insurance needs will evolve, so it’s crucial to keep an ongoing dialogue with your insurance broker to adapt your coverage as your business grows, this is especially important if you add a new service or diversify activities during the policy year.

Key Insurance Covers for Alarm Installers

Based on our experience these are the key insurance covers for alarm installers;

• Efficacy insurance (also referred to as ‘failure to perform’ cover) protects you against the legal liability for injury to third parties, or damage to third-party property when a product or service you supply fails to perform its intended function. It is an important cover for contractors involved in performance-critical activities like installing alarm and security systems or fire suppression systems. When your product or service fails to perform as intended, it can result in harm to your customers, their property, or even third parties. For example, if a smoke alarm you installed fails to operate and a house is destroyed by fire, you could end up with a costly claim, efficacy cover will respond and pay the claim.
• Employers’ Liability Insurance is a legal requirement if you employ staff and provides cover if a member of staff is injured, or suffers illness or damage because of their work.
• Public Liability can protect against compensation claims for injury or damage to customers, suppliers or third parties. If you meet members of the public either at your premises or elsewhere this type of cover may be a contractual requirement. If you exhibit at fairs or craft markets, you will be asked to hold this type of insurance and probably provide a copy of it to organisers.

• Manufacturers, distributors, suppliers and retailers could all be liable if a product or a component part causes injury or damage to a third party i.e., the person who buys it from you. Product Liability Insurance would cover your legal fees as well as any compensation you are required to pay. It is not currently a legal requirement to hold this type of insurance, but you do owe a duty of care towards your customers. Product Liability Insurance is usually coupled with your Public Liability Insurance but check with your insurer or broker as it can vary.
• Professional Advice is automatically provided under the Public Liability section of the policy and defined as ‘advice given as part of an overall contract to install, maintain, service and/or repair that does not incur a separate fee’. This provides protection against any third party, individual or business, being awarded damages because the advice given to them by you or your company resulted in injury, loss or damage to them or their property as long as the advice given was part of a contract to install, maintain, service and/or repair. If you do give advice for a separate fee or carry out risk assessments, system design, surveys or provide training you will need to consider arranging Professional Indemnity Insurance.
• Professional Indemnity Insurance: If you do give advice for a separate fee or carry out risk assessments, system design, surveys or provide training you will need to consider arranging Professional Indemnity Insurance.
• Fidelity Insurance offers you comprehensive protection against fraud, for example, financial losses caused by criminal acts committed by employees and other trusted third parties.
• Defective workmanship Insurance provides cover for your liability in relation to costs of rectifying defective work that causes damage, loss or injury to third parties.

• Financial Loss cover is when the Insurers will pay claims where the policyholder is legally liable to pay as damages costs and expenses for accidental financial loss where such loss is not consequent upon injury or loss of or damage to property.

What are the risks I could face?

Alarm installers, like any business, face various risks that can affect their operations, finances, and reputation. Understanding these risks is essential for taking proactive measures and obtaining the right insurance coverage. Here are some common risks you might face:

Accidents and Injuries: During installation or maintenance work, there’s a risk of accidents leading to bodily injuries to you, your employees, or third parties. This can result from falls, equipment malfunctions, or other on-site hazards. (Employers or Public Liability)

System Malfunctions: Alarm systems can sometimes malfunction or fail to perform as intended. If a client experiences a break-in or security breach due to a system issue, you may be liable for financial losses or damages. (Efficacy Insurance)

Data Breaches: If you store client information electronically, there’s a risk of data breaches, leading to the exposure of sensitive customer data. This can result in legal liabilities, regulatory fines, and damage to your reputation. (Professional Indemnity?)

Errors and Omissions: Mistakes in system design or installation can lead to claims of negligence. Clients may allege that your work failed to meet their expectations or caused financial losses. (Professional Indemnity)

There are lots of things that you can do to mitigate these risks; implement safety protocols, provide employee training, secure their data, maintain clear contracts and documentation, and invest in appropriate insurance cover.

What insurance do I need to be a member of SSAIB?

There is no question that membership of a trade organisation can provide you with added protection and build credibility with clients. Efficacy insurance is an essential insurance cover if you want to be a member of SSAIB.

With over 30 years of experience meeting the unique insurance needs of alarm installers, we at Alarminsure understand the critical elements that should be included in your policy. We recognise the significance of efficacy insurance, which safeguards you if an alarm system does not work as intended.

We are among a few brokers offering efficacy insurance as a standard feature within our specialist security insurance policy.

How much cover do I need?

To protect your business comprehensively you will need a range of insurance covers from Employers Liability and Public Liability to Professional Indemnity and Efficacy insurance.

Getting the right type of insurance can be tricky, especially depending on the types of work you do. You don’t want to pay for coverage you don’t need, but you also don’t want to be underinsured when you need it most.

There might also be contractual requirements to have a certain level of insurance cover to work with clients, this is common with local authority or large corporate contracts.

The easiest way to get to the answer is to get in touch with Alarminsure and one of the team will give you a call to discuss your business and the cover you need; you’ll receive our professional advice so we can build you the right insurance program for you.

Summary

Securing the right type of insurance is important for everyone, but it can be especially tricky for people who work in certain professions. If you’re not sure what type of insurance you need or how much coverage you should have, it’s a good idea to talk to an insurance broker.

We can help you assess your risks and find the right insurance policy for your needs.

We’d love to help you get the right cover for your business. The best way to get a quote is to give us a call on 0800 071 0999 or email us atinfo@alarminsure.comand one of the team will help you.

Remember, insurance is there to protect you financially in the event of a loss. By taking the time to choose the right insurance policy, you can give yourself peace of mind knowing that you’re covered.