Alarm Installer Insurance

State laws and local regulations typically require alarm system contractors to have a license and permit. To obtain them, you may need to be bonded and insured.

Here are several examples of what you might need:

• Business license. To form a business, you'll need to get a business license and register with your local government.
• Contractor's license. In many states, you'll need a contractor's license, electrician's license, or low voltage contractor's license to install alarm systems. You may need to be a certain age, pass an exam, pay a fee, and show proof of liability coverage or a bond.
• Operator license. Some states issue specific operator licenses for installing alarms. For example, California businesses that install, sell, or service alarms must obtain a license from the Bureau of Security and Investigative Services (BSIS).
• Alarm permit. Typically the homeowner or project owner will need a permit from their local fire department or police department before they can install an alarm system.
• Electrical permits. You might need a permit for work that involves new wiring or significant changes to a building's electrical system.

Even when it's not required, a license or certification can help your business get contracts and win bids. For example, you could earn a Fire Alarm Systems certification from the National Institute for Certification in Engineering Technologies (NICET), or become a Certified Alarm Technician through the Electronic Security Association (ESA).

Yes, alarm installers usually need to have general liability insurance. Here are the most common reasons you might need coverage:

• You need it for a license. State licensing requirements for contractors and electricians often mandate general liability insurance and workers' compensation insurance, even if you work alone.
• Your landlord requires it. You'll typically need to show proof of liability insurance to sign a lease for an office or other commercial space.
• Your clients request it. Clients and partners may require you to be insured, so they know they'll be protected in the event of a lawsuit.

Even when it's not required, it's important to carry liability insurance. Otherwise, a single accident or injury could financially devastate your small business.

Alarm system contractors often rely on other types of installation insurance as part of a comprehensive risk management strategy:

• Commercial property insurance covers your office and its contents, including computers, furniture, and equipment stored at your business address. If you don't have an office, you can buy business personal property (BPP) coverage to protect the items that belong to your business instead.
• Equipment breakdown insurance helps your business recover if a piece of critical machinery or equipment breaks down unexpectedly.
• Inland marine insurance protects business property that travels to jobsites, including power drills and other equipment. It also covers items in transit and stored off-site.
• Installation floater insurance is a type of inland marine coverage that protects security systems, video cameras, and other materials awaiting installation at a jobsite.
• Commercial umbrella insurance, similar to excess liability insurance, activates to provide coverage when your underlying general liability insurance, commercial auto insurance, or employer's liability insurance policy reaches the limit on a claim.
• Surety bonds are often required for licenses, permits, and contracts. They ensure your business will comply with regulations, safety standards, and the contract's terms.

Our licensed insurance agents can help you find the best insurance solutions for your alarm installation business, including any other policies such as cyber insurance or business interruption insurance.