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Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a home security company.

Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a home security company.

This article will discuss the primary insurance coverage for home security firms, general liability insurance, as well as additional policies that are appropriate for this industry.

Home Security Companies Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: You spill coffee on the client’s high-tech laptop while installing a home security system. The liquid has severely damaged it, necessitating substantial repairs. Your company’s general liability coverage would most likely cover the subsequent losses.

Example 2: While installing a security system, you accidentally create an electrical problem that necessitates the services of a professional electrician. The charge for the electrician is pretty high. In this instance, general liability insurance would most likely cover part of the losses owed by your company.

Example 3: Your logo is discovered to be strikingly similar to the current company logo of an out-of-state competition. A copyright infringement lawsuit has been served on you. If you were found to be culpable, general liability insurance would almost certainly pay part of the losses or any settlement negotiated between your firm and the other company.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Home security firms in the United States typically pay between $400 and $700 per year for $1 million in general liability coverage.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Home Security Companies

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every home security businesses should have are as follows:

Insurance for Professional Liability

Businesses that provide technical services may be held accountable for errors or omissions in these services. Professional liability insurance is essential for a home security company in the event that the system malfunctions and causes substantial damage to the client or their property. For example, an undetected break-in might be disastrous for a security business. This insurance may give some coverage for such incidents.

Insurance for Commercial Vehicles

Home security companies will drive to customers’ homes as required to provide their services. Commercial vehicle insurance helps protect your company in the case of an automobile accident.

Insurance for Commercial Property

A commercial property insurance is required for businesses that depend on equipment, tools, and other material assets. If your commercial real estate, automobiles, or other commercial assets are destroyed by fires or severe weather, commercial property insurance may assist to pay the expenses, sparing your company from incurring potentially crippling expenditures from reinvesting in costly inventory/tools.

Coverage Options for Some Home Security Companies

In addition to the insurance listed above, your home security business may need a few more forms of coverage based on specific features of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Workers’ Compensation

Running your company alone might save you money, but if you want to develop into a larger enterprise, you’ll need people. Part-time and full-time employees must be protected by a workers’ compensation coverage in most states. This covers any workplace accident, safeguarding your company from employee litigation and assisting with the compensation of injured personnel. Workers’ compensation plans also provide disability and death payments.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.