Yes, Security Professionals Need Professional Liability Coverage
You perform your services with precision and reliability and you have complete confidence that your systems work as advertised. You’ve never had any incidents.
But you still need Professional Liability insurance, also called Errors & Omissions (E&O) coverage. No matter how confidently you perform your job, the execution of the job exposes you to risks that could be devastating if you’re not properly protected.
Helping Others Mitigate Risk… Can Be Risky
In this industry, companies face serious risks that could threaten the assets and financial stability of your business. Whether you sell, install, or monitor burglar or fire alarms, or other security systems, or you wire them as a sub-contractor, you have a great deal of responsibility for ensuring that alarms and monitoring services perform as promised. At the same time, even if you have the benefit of a well written contract, you also face the potential cost of legal defense if a damaged customer brings litigation. Professional Liability / Errors and Omissions insurance (E&O) protects firms if they are ever sued for damage or injury arising from negligently performed services.
Don’t Assume General Liability Covers All
A mistake many alarm companies have made is assuming that General Liability insurance covers you in the event of a lawsuit for services rendered. General Liability will not normally cover any programmed, smart, activated or monitored systems, as programmed responses are beyond the intended scope of its coverage. Such a policy on its own would leave gaps in coverage that would not cover related claims.
What Professional Liability Insurance Covers
Professional Liability insurance protects your business against actual or alleged errors or omissions that may have occurred during the rendering of service. These claims can include:
- Alarm providing wrong or omitting information leading to loss
- Failing to notify AHJ within a desired timeframe leading to loss
- Negligent programming leading to false alarms causing non-response leading to loss
- Alarm sending false-positive signals leading to ignoring signals leading to bodily injury
- Bodily injury at a premises where private security response is provided
- Damage to client’s property
- False arrest / detainment
Not every insurance program understands the needs of the alarm industry. Eclipse Insurance and Risk Management provides comprehensive insurance and customized risk management solutions tailored to the alarm industry. Call us today for more information at 800-530-4448.