Lower Business Insurance Premiums with Burglar Alarms, Security Systems, and Access Control
Businesses can save money on insurance by installing modern security systems like burglar alarms, access control, and surveillance cameras. Why is this? These systems reduce risk, which insurers reward with lower premiums. But sticking with outdated or minimal security can have the opposite effect, increasing costs and leaving businesses more vulnerable.
Here’s a closer look at how security systems affect insurance rates and what businesses can do to get the best deal.
How Security Systems Lower Insurance Costs
Insurance companies base premiums on risk. The higher the risk the more likely an insurance company will have to pay out on a claim, and the lower the risk the less likely an insurance company will have claims to pay out. Simply put, while the point of having business insurance is to cover unexpected and potentially devastating losses, insurance companies do not want to pay on claims and are motivated to minimize risk wherever possible. Therefore, when businesses take steps to lower their risk, like adding security technology, they can often negotiate better rates based on the benefits of their investment in such technology:
Prevention: Modern alarms and cameras make break-ins less likely, which lowers the chance of filing claims.
Early Detection: Sensors and alerts catch problems quickly, minimizing damage.
Reduced Losses: Security systems limit the extent of theft or vandalism, which saves money for both the business and the insurer.
Because of these benefits, insurers often offer discounts to businesses that install and maintain up-to-date security systems.
Real-Life Examples of Savings
Let's briefly look at this from three real-life business examples:
Small Retail Stores: A shop installs a burglar alarm and security cameras monitored by a professional service. Their insurer gives a 10% discount on property insurance because these measures lower the risk of theft.
Office Buildings: An office with access control systems sees a drop in liability insurance costs, as unauthorized access is harder to achieve.
Factories: A manufacturer integrates fire alarms with a security system. This proactive setup lowers the risk of fire-related damage, leading to a 15% savings on premiums.
The Risks of Using Old or Inadequate Systems
Businesses relying on outdated systems—or none at all—may face higher premiums or even coverage issues:
Higher Costs: Without modern alarms or cameras, insurers view the property as more vulnerable, which means higher premiums.
Claim Denials: If outdated systems fail to work during a break-in or other event, the insurer could deny the claim.
Increased Liability: Old or faulty systems may lead to unauthorized access, which could expose the business to lawsuits or other expenses.
Types of Insurance Affected
Property Insurance: Covers theft, vandalism, and damage. Modern security systems reduce the risk of these incidents, lowering costs.
Liability Insurance: Helps protect against claims of injury or damages. Access control systems, for example, can help avoid incidents like unauthorized entry.
Business Interruption Insurance: If operations are disrupted by theft or damage, strong security systems can minimize losses and downtime, which insurers take into account.
Tips to Save Money on Insurance
Invest in New Technology: Install reliable alarm systems, cameras, and access controls.
Choose Professional Monitoring: Many insurers give extra discounts for systems that are monitored 24/7.
Keep Systems Up to Date: Regular maintenance and upgrades ensure the technology remains effective.
Work with Your Insurer: Let your insurance company know about your security measures. Provide documentation to show what you’ve installed and how it’s maintained.
10-Point Checklist for Negotiating Reduced Insurance Rates for Security Technology
Deploying advanced security systems like burglar alarms, access control systems, and surveillance cameras can provide significant leverage when negotiating with your insurance carrier. To maximize your savings, businesses should take a structured, proactive approach. Here are practical steps to help you secure reduced rates:
1. Document Your Security Measures
Insurance carriers need clear proof that your business has taken steps to mitigate risks.
Gather Evidence: Compile a portfolio that includes purchase receipts, installation records, user manuals, and photos of your security systems.
Show Monitoring Agreements: Provide contracts or invoices for professional monitoring services, if applicable. Insurers often favor systems that are actively monitored.
Certifications and Standards: Highlight compliance with industry standards, such as UL-certification for alarm systems or adherence to local fire codes.
2. Understand Your Current Coverage and Risks
Before starting negotiations, know what’s covered under your existing policy and where your risks lie.
Review Your Policy: Identify sections where security measures could directly impact rates, such as property damage, theft, or liability coverages.
Conduct a Risk Assessment: Use data from your security provider or a third-party expert to demonstrate how your technology reduces risks.
3. Talk to Your Insurance Agent Early
Don’t wait until renewal time to start the conversation. Reach out to your insurance agent or broker as soon as you deploy new security technology.
Request a Policy Review: Ask how your new security measures might affect your premiums.
Highlight Reduced Risks: Explain how your systems minimize theft, vandalism, or unauthorized access, which can lower claims and costs for the insurer.
Ask for Specific Discounts: Many insurers have predefined discounts for businesses with security systems. Inquire if you qualify.
4. Compare Policies and Carriers
If your current insurer doesn’t offer competitive discounts, it may be time to shop around.
Get Multiple Quotes: Ask other carriers for quotes based on your enhanced security measures.
Use a Broker: An insurance broker can help you find carriers that offer the best rates for businesses with strong security protocols.
5. Leverage Data to Strengthen Your Case
Insurers value numbers and facts. Provide evidence showing the measurable impact of your security system.
Reduced Incidents: Share data on how crime rates dropped after installing your security measures.
Enhanced Response Times: Show how systems like monitored alarms lead to faster emergency responses.
Cost Savings for Insurers: Emphasize how fewer claims mean lower payouts for them.
6. Highlight Maintenance and Upgrades
Let your insurer know that your systems are regularly maintained and updated. This ensures they remain effective.
Service Records: Share documentation of system inspections and upgrades.
Software Updates: Note any cybersecurity measures in place for smart security systems, reducing the risk of breaches.
7. Bundle Coverages for Better Savings
Insurance carriers often provide discounts when you bundle different types of coverage, such as:
Property insurance
Liability insurance
Business interruption insurance
If your security systems impact multiple coverages, bundling can lead to additional savings.
8. Negotiate Policy Adjustments
Once you’ve made your case, ask your insurer for specific changes to your policy:
Lower Premiums: Request rate reductions based on your reduced risk profile.
Higher Deductibles: If your risks are significantly reduced, consider negotiating a higher deductible to lower your premium.
Customized Coverage: Work with your insurer to tailor your coverage to match your enhanced security measures.
9. Request Ongoing Evaluations
As your business grows or you add new security technology, schedule regular evaluations with your insurer to ensure your premiums reflect your current risk levels.
10. Work with Experts
Security integrators like GenX Security Solutions can assist by providing documentation, system descriptions, and risk assessments tailored to insurers' requirements.
Related Reading: What Security Technology is Covered by Business Insurance?
A Business Success Story
A manufacturing company struggling with high insurance premiums consulted a security expert. After installing updated security cameras, key card access systems, and fire alarms with real-time alerts, their premiums dropped by 20%. The insurer recognized the new systems as a significant step in reducing risk, saving the business thousands of dollars annually.
Final Thoughts
Modern security technology doesn’t just protect your business—it also makes it more affordable to insure. On the other hand, sticking with outdated systems can cost more in the long run. By upgrading your security measures, you can save money, reduce risks, and have peace of mind knowing your business is better protected.
Negotiating lower insurance rates for deploying security technology is about proving the value of your investment. With the right documentation, a clear understanding of your policy, and a willingness to explore options, businesses can unlock significant savings. Taking a proactive approach not only benefits your bottom line but also ensures your property and assets are well-protected.
Ready to install or upgrade your security system? Contact GenX Security Solutions today to get started. Visit www.genXsecurity.com or call us for a consultation! Our quotes are fast, fair, and always FREE.
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