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One of the best ways to potentially bring down insurance premiums is to increase the security of your business. Think about it, an insurance company is a business that charges you a monthly or yearly premium by providing you with peace of mind against theft or damage. In the unfortunate event of a theft, the insurance company will make you whole and pay you back for the loss that you incurred.
Now, from a business standpoint, an insurance company will stand to lose more if they have a client that doesn’t follow the security best practices of other businesses in the same category. Meaning, that if you don’t provide ample security for your business, then it is highly likely that you will eventually get robbed, and depending on how weak the security measures are, the insurance company might have considerable liability toward your business.
Normally, for such a frivolous establishment, an insurance company might not take on the business as a client. Even if the business passes its initial inspections, it might get offered a lofty premium that it would have to pay to insure its business.
The opposite of this is true as well. If you fully secure your business, follow all the safety and security best practices, and have regularly maintained security hardware, then the insurance company might offer you a discount on the policy rate – since now, the insurance company itself will have a lower risk of loss for your business.
Read below to learn more about all the ways security influences policy rates and how you can bring them down, all while bringing up your business security!
Security Essentials
What are the top security measures that businesses need to take in order to secure lower policy rates?
Well, there are plenty of strategies that you can use to strengthen the security of your business as well as lower the overall risk of theft.
Here are some of the top and most used security hardware:
Burglar Alarms and Sensors
With criminals getting smarter every day, sometimes door and window locks are just not enough. It is important to take your business security a step further and invest in state-of-the-art burglar alarm systems.
An alarm system is a system made up of different types of sensors placed on key locations around the property. These sensors pick up on any unusual movement or activity and sound a loud siren to alert all those around of the intrusion.
Alarm systems are extremely effective and are one of the best deterrents against burglaries and intrusions. You may opt for a simple bells-only burglar alarm or go for a dialler system.
For added security and protection, you may opt for professional alarm monitoring services where once the alarm is triggered, a monitoring company is immediately notified so that they can take the necessary action.
When it comes to the sensors and detectors, some of the most common ones include PIR or motion sensors, door and window sensors, and glass-break detectors.
Nowadays, you can also go with smart sensors that use artificial intelligence and advanced algorithms to detect threats. Please keep in mind that sensors work best with other security hardware. For example, if you install smart sensors, then you should configure them to work with other hardware, like access control systems.
This way, if an intruder makes their way into your business, the sensors can detect the break-in, sound the alarm, and disable all the access locks in that area. These systems may not directly decrease insurance rates, but they surely add to the larger security of your business.
CCTV
CCTV cameras are an essential part of any security system. In fact, you can say that installing CCTV cameras is the single most important security measure that you can take for your business! CCTV cameras add eyes and ears to your premises.
These cameras not only deter crime, but they also provide proof of theft which is incredibly valuable in the case of claiming insurance. This is why many insurance companies have several clauses that cover the responsibilities of the business owner!
CCTV cameras are available in many different forms. The most common are usually rated for outside environments. An insurance company agent will carefully assess your business for security flaws and check the number of CCTV cameras covering blind spots and other important access areas.
In some cases, the type of camera used for your business may also contribute to lower insurance rates. For example, if you use a simple IP camera over a wireless connection, then you are not likely to see a reduction in rates.
The reason for this is that wireless cameras are usually seen as inferior to wired cameras because they rely on connection quality. In other words, there is likely to be a significant delay in the live feed of an IP camera compared to a wired CCTV camera.
Furthermore, a camera with a lower resolution may not be able to capture footage correctly. This means that even if the camera catches a crime in action, you will rarely be able to identify the perpetrators. This can not only work in the favour of the criminals, but it will likely also cause a jump in insurance rates.
The best way to go about this problem is to hire a professional installation company like Calder Security. An experienced company can provide you with professionals who can perform a security audit of your business.
Using the results of the audit, the team can help secure your business in a way that can bring down your insurance rates. Security companies have vast experience and security blueprints for any type of business – and they know exactly how to secure a client’s business to bring these additional benefits.
Access Control Systems
Access Control Systems are one of the best ways to restrict access to certain spaces in your business. These control systems have been around for decades and have a proven track record of controlling the flow of people to and from a restricted area.
There are three common authentication types for access control systems: the first is a humble keypad lock. This lock features a numpad that has all the access codes saved on board and only people who know the code can access the restricted space.
The second requires biometric authentication. In other words, authorised personnel will need to register their thumb or fingerprint to create their account. Biometric authentication pads are becoming increasingly popular in high-risk businesses because of their convenience and reliability.
RFID access control systems are also incredibly useful and convenient. The user authenticates themselves by holding a special RFID card against the scanner. Like biometric scanners, RFID scanners are ideal for businesses that want very specific access in restricted areas.
There are also multiple forms of access control systems like role-based, mandatory access, and discretionary access systems. The purpose of these multiple forms of access controls is to increase accountability and transparency since every visit and exit is logged – and, in the case of a threat, the authorities can easily figure out the last person to enter or leave the business premises.
Installing Access Control Systems in areas of your business that deal in cash or valuables is an excellent idea to secure your business. It also shows the insurance company that you have taken all the necessary measures to secure your business at your end.
We recommend that you consult with a security installation company like Calder Security to better understand these systems and figure out the right system for your business.
Locks and Safes
Using safes and locks continues to be one of the easiest ways to secure your assets. People have been using safes for generations, except now they are much smarter than before!
Storing valuables in a safe is an excellent way to not just secure your most valuable assets, but all shows insurance companies that you are serious about the security of your business and are taking every measure to protect your business assets.
In the same way, installing proper locks is just as important. You would be surprised by just how many break-ins occur due to faulty or poor locks.
A simple lock is your first line of defence against theft! This is why we recommend that you go with a professional installation company like Calder Security to secure your business. Calder has their own certified locksmiths who have a track record of keeping their clients’ valuable assets safe.
Staff Training
Training is an equally important security measure that can further help strengthen the security of your business and even help bring down insurance rates.
Training employees on how to pick up threats and establishing the right protocols for avoiding these attempts can significantly increase business security and prove to your insurance company that you take security seriously!
We also recommend that you train employees on how to use the security hardware installed at the premises. For the best experience, we advise that you install your burglar alarm system through professionals who can provide all the installation and training services under one roof.
The Impact of Burglar Alarms on Business Insurance Rates
Even if the insurance company makes you whole, protecting your assets yourself is still a great best practice because it can prevent downtime for your business.
Insurance claims can take time, and there are quite a lot of steps involved in the process – and, while at the end of the day, you won’t incur an immediate loss, the downtime your business faces might result in a loss of sales and, in some cases, it might also damage your brand image.
Think about it, customers expect to feel safe when they visit a business. However, when theft occurs, it can damage the perception of customers. In some cases, it might also lead the customers to believe that the business didn’t take the necessary measures to prevent the crime, which can significantly damage the brand persona of the business.
Here are some important ways burglar alarm systems and security best practices bring down insurance rates:
Risk Mitigation
As explained above, insurance companies calculate their profits based on statistics. So, if your business is more likely to incur a loss due to poor management or security, then you will likely be charged a higher premium. However, if you have a burglar alarm system installed and have followed all the security best practices then you are likely to receive a discount.
Please keep in mind that the discount will depend on the type of system you have installed. For example, for simple burglar alarms, you might get a meagre discount, however, if you have a complex system installed, then you might be looking at an overall better business insurance rate.
A complex system can be a monitored burglar alarm system that alerts a security company of any threat or break-in. This type of system reduces the reaction time for authorities and is ideal for high-risk businesses that require tighter security.
Insurance Claim History
Businesses that have a history of past claims may be subject to higher insurance fees. The truth is, if your business has had theft in the past, and you have done nothing to secure the business, then the insurance company will not have a reason to keep your rate the same.
Chances are that the insurance company will likely increase the rate before the end of the calendar year, and you will receive a revised (and increased) rate for the coming year. If your business has a very poor track record of safety, then the company might even put a conditional renewal on your contract where you will have to prove the safety of your business to continue to be insured. This is, however, the worst-case scenario and many businesses are likely to improve their business security after theft.
Regardless, it is important to keep in mind that even minor incidents count towards an increased rate of claims, which can significantly impact the business insurance rates.
Keeping Up with the Maintenance Schedule
Security hardware typically requires a strict maintenance schedule where every piece of hardware is inspected for potential faults or errors. For example, outdoor CCTV cameras are subject to environmental damage, and over time, the hardware, especially the wires, can deteriorate.
This is why a professional security technician needs to inspect the CCTV network to make sure that there are no potential threats that could disrupt the security of the business. Similarly, other security hardware like alarms, smoke detectors, motion sensors, etc also need to be checked for battery issues.
These types of hardware usually depend on external batteries that need to be replaced after some time. A professional can not only change the batteries of the sensors, but they can also make sure that they are calibrated correctly.
Finally, if you have a smart burglar alarm system that is dependent on complex software, then both the software and hardware aspects of the system will need to be inspected.
Inspecting the software can reveal bugs or other software issues that may cause problems down the road. Furthermore, if there is a new security software patch or an update for hardware, then the team can install it and keep your security up to date.
CONTACT CALDER SECURITY
At Calder Security, we provide a comprehensive range of security solutions that include not just professional installation but also monitoring, maintenance, and repair services.
We are members of the Master Locksmith Association (MLA), approved members of the Security Systems and Alarms Inspection Board (SSAIB), and also conform to all the relevant British and EU Standards.
We follow all the best practices in the industry and install only high-quality, state-of-the-art security systems.
We offer various levels of monitoring via a 24-hour monitoring centre using Dualcom and BT Redcare signalling, which is the most secure alarm monitoring system and the largest supplier of intelligent alarm signalling services in the UK.
We understand the importance of having to regularly maintain security systems since the inability to do so might result in serious faults and consequent vulnerabilities in your property’s security.
We provide professional maintenance checks and reminders for when the checks are due to help you stay compliant with the law and work fast to restore your security systems to excellent condition.
We offer a 24-hour call-out service for customers and can also repair systems not installed by us. Our engineers are highly skilled and can restore faulty systems to full working order in one visit.
Contact us here or call us on 0800 612 9799 to talk to our experts right away!
Photo by Patrick Tomasso on Unsplash