Alarm Insurance
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Q: What is the right amount of coverage for a security firm?
A: An alarm contractor should have a minimum of $1 Million Occurrence / $3 Million Aggregate for General/Professional Liability coverage on an occurrence basis. They should not accept a certificate for a master policy as adequate coverage; they should be the only company on their policy. These limits should increase based on exposure in operations of the company and contract requirements. Many contracts require a General/Professional Liability and Excess/Umbrella combined limit from $5-$10 Million. Always check with your insurance broker for contract requirements by clients.

Q: What standard coverages should an alarm security firm require of their carrier?
A: Adequate limits of coverage. General and Professional coverage. No sub-limits on major coverage risks. Broad contractual coverage. Broad coverage for theft by 1st and 3rd Parties. No conviction or anti-collusion clauses on theft coverage. Vicarious liability coverage for intentional and criminal acts that protect the company. No exclusion for punitive damages. Sexual Harassment/Molestation/Discrimination coverage. Coverage for all property in the company’s care, custody, and control. Protection from third-party oversuit – where clients sue the contractor after an employee sues the client.