Alarm monitoring services can play a critical role in protecting clients’ homes and businesses. However, with this responsibility comes significant liability exposures. Whether due to system failures, human error or unforeseen events, alarm monitoring companies must be aware of the risks they face and how to mitigate them.

What Are Common Liability Risks for My Business?

Alarm monitoring companies face many potential liability risks, including the following:

• Alarm malfunctions—If a client’s alarms are defective or fail to function as intended, criminals may gain access to their property and your business could be sued for resulting losses.

• Negligence—Clients may blame incidents on alleged inadequacies, such as substandard employee training, insufficient maintenance or violation of protocols.

• Data breaches—In an increasingly digital world, alarm monitoring services may have store and have access to clients’ sensitive data. Should this information be exposed, you could face lawsuits.

• Client property damage—While visiting a client’s home or business, your employees might accidentally damage their property, potentially requiring compensation.

• Automobile accidents—If your business uses vans or other vehicles to visit and service clients’ systems, you could eventually be found liable for accidents on the road.

How Can Insurance Help Address These Concerns?

Insurance is an essential investment for addressing liability risks. A suitable insurance package may include the following:

• General liability insurance—This type of policy can financially protect your company if you’re allegedly at fault for other parties’ bodily injuries or property damage.

• Errors and omissions insurance—Also known as professional liability insurance, these policies may cover legal expenses and losses arising from professional mistakes or negligence.

• Cyber liability insurance—This form of insurance may account for losses and damages if your alarm monitoring business is sued after a data breach or cyber incident, such as by clients whose sensitive data may have been compromised.

• Commercial auto insurance—Legally required if you use motor vehicles for business purposes, this type of policy may limit out-of-pocket losses if you cause an accident in which other parties are injured or suffer property damage.

Get the Right Coverage

Contact Paris Kirwan Associates in Rochester, NY today to discuss your alarm monitoring service’s coverage needs or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.