Commercial Security Systems May Reduce Business Insurance Policy Premiums
Usually when we think of commercial security systems, our first thoughts have to do with protection against intruders and against damage from fire and smoke. And certainly, security systems are a first line of defense against these dangers. Criminals are less likely to burglarize a home or business if an alarm system is installed, and fire alarm systems buy the most valuable commodity in the event of a fire: time. The faster the fire can be brought under control, the more likely damage from fire and smoke will be minimal.
Add video surveillance and outdoor perimeter protection into the mix, and a security system becomes an asset no savvy business owner should be without. There is simply too much at stake to neglect this investment in your business.
However, the benefits of installing a security system for your business go beyond simply protecting your livelihood from invasion and fire. It may save you money.
Lower Risk Equals Lower Rates
Just as a car with an alarm system installed may qualify for reduced car insurance rates, some insurance companies will offer a reduced policy premium for businesses that have security systems installed. The reasoning is quite simple: a carefully monitored business is less of a risk than one unmonitored, so the insurer can lower the rate with a fair amount of confidence. Since many factors influencing insurance costs are somewhat static, such as location of the business and the value of the contents and business itself, it is good to know some measures that can be taken to modify insurance expenses.
The discounts vary from state to state and between insurance companies themselves. Many companies require the security system to include basic burglar and fire alert systems and be connected to a monitoring service-meaning it alerts the police, fire department or private monitoring service in case of emergency.
Depending on the size and scope of your business, your insurance company may mandate specific qualifications beyond the required code regulations for your particular local, state and federal fire codes. For example, some companies insist that the equipment be UL certified. UL stands for Underwriters Laboratory Inc., and this certification guarantees that the products meet worldwide standards of safety.
A common concern is the cost involved in installing security measures that qualify for reduced insurance rates. But you may find that the policy savings more than pay for the expense of upgrading your security. And you get peace of mind as well-which is priceless.
Because requirements vary from company to company, your first step is to contact your insurer to find out what their specifications are for reduced commercial insurance rates. You can then take the steps necessary to qualify your business.
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