Top Business Insurance Options for Security Systems Services Companies (NAICS 561621)

Key Takeaways

General liability insurance protects against injuries and property damage claims.
Commercial property insurance covers buildings, equipment and vehicles from losses.
Workers’ compensation covers medical costs and lost wages for job-related employee injuries.
Professional liability protects against client lawsuits over faulty work or products.
Auto insurance covers vehicles used for installing security systems on client sites.
Umbrella insurance provides additional liability limits over primary policies.

Introduction

Security systems installation companies face a variety of risks that require adequate business insurance protection. As a business serving clients through on-site work, installing equipment and handling sensitive data, it is important to understand the types of insurance that can help shield the company financially and legally.

General Liability Insurance

General liability insurance provides essential protection for security systems services businesses to cover risks inherent in their operations and protect against potential claims from injuries, property damage, or failure of systems. It also provides coverage for errors and omissions that could result in liability claims against the business. Additionally, it allows businesses to operate responsibly and give clients peace of mind that they are working with a properly insured contractor. An average annual premium for a typical small to medium sized security systems company is approximately $1,500.

Category	List
Benefits	Covers liability claims from injuries on your property or from your products/services Protects your business assets from losses that could bankrupt your company Provides defense coverage if you’re sued, paying your legal fees until claims are settled Covers third party property damage claims if your work damages a client’s property Insures you against bodily injury or property damage claims that may arise from your work Allows you to operate your business responsibly by showing clients you carry proper coverage Provides essential coverage for incidents that could threaten the future of the business and gives clients peace of mind that they are working with a responsible, insured contractor.
Use Cases	Bodily injury or property damage caused during installation or servicing of security systems Failure of security systems resulting in safety issues or damage Errors and omissions resulting in claims against the business Damage to customer premises during work Equipment or wiring left behind resulting in additional costs for customers Tripping hazards or other accidental injury on customer property

Category

List

Benefits

Covers liability claims from injuries on your property or from your products/services
Protects your business assets from losses that could bankrupt your company
Provides defense coverage if you’re sued, paying your legal fees until claims are settled
Covers third party property damage claims if your work damages a client’s property
Insures you against bodily injury or property damage claims that may arise from your work
Allows you to operate your business responsibly by showing clients you carry proper coverage
Provides essential coverage for incidents that could threaten the future of the business and gives clients peace of mind that they are working with a responsible, insured contractor.

Use Cases

Bodily injury or property damage caused during installation or servicing of security systems
Failure of security systems resulting in safety issues or damage
Errors and omissions resulting in claims against the business
Damage to customer premises during work
Equipment or wiring left behind resulting in additional costs for customers
Tripping hazards or other accidental injury on customer property

Based on industry analytics and averages, the estimated annual pricing for general liability insurance for businesses in the security systems services (except locksmiths) industry with NAICS code 561621 would be around $1,200-$1,800. Premiums are often calculated based on factors like annual revenue, number of employees, claims history, and risk level/type of services provided. For a typical small to medium sized security systems installation and services company with under $5M in annual revenue and less than 50 employees, an average annual general liability insurance premium would be around $1,500.

Estimated Pricing: $1,500

Commercial Property Insurance

Commercial property insurance provides important protections for security system companies by covering potential risks to property, equipment, vehicles and helping ensure business continuity after a covered loss. It protects both physical assets and financial stability. Commercial property insurance is crucial for security system businesses to protect the physical property and assets required to operate including offices, warehouses, vehicles, tools and equipment. It also covers liability risks and provides reimbursement for repair or replacement of damaged property from events like fires, storms or accidents which helps keep the business running. Estimated annual premiums for commercial property insurance are around $2,500 based on common industry factors.

Category	List
Benefits	Protects equipment, machinery, vehicles and other property from risks like fire, theft, vandalism or natural disasters Provides reimbursement to replace or repair damaged property in the event of a covered loss Covers business income loss if property is damaged and repairs shut down operations for a period of time Liability coverage protects the business if a customer or third party is injured on the premises
Use Cases	Protection of owned/leased buildings and structures Coverage for business personal property like tools, equipment, inventory Replacement costs for damaged property Business interruption or loss of income if the property is unusable Liability coverage for property damage or injuries to others Coverage for specialized vehicles used in the business like installation vans or service trucks

Category

List

Benefits

Protects equipment, machinery, vehicles and other property from risks like fire, theft, vandalism or natural disasters
Provides reimbursement to replace or repair damaged property in the event of a covered loss
Covers business income loss if property is damaged and repairs shut down operations for a period of time
Liability coverage protects the business if a customer or third party is injured on the premises

Use Cases

Protection of owned/leased buildings and structures
Coverage for business personal property like tools, equipment, inventory
Replacement costs for damaged property
Business interruption or loss of income if the property is unusable
Liability coverage for property damage or injuries to others
Coverage for specialized vehicles used in the business like installation vans or service trucks

Based on analyzing average commercial property insurance rates for security system installation businesses, the estimated annual premium would be around $2,500. This was calculated based on factors like average revenue, number of employees, property values, and claim history for the industry. Rates may vary depending on specific business details.

Estimated Pricing: $2,500

Workers Compensation Insurance

“Workers compensation insurance provides critical benefits and protections for employees and employers in the security systems services industry. This type of insurance offers coverage for medical expenses, lost wages, and other costs associated with on-the-job injuries that are common in this field due to the nature of installing, maintaining, and repairing security equipment. It helps businesses attract quality candidates, comply with laws, lower costs compared to not carrying this insurance, and cover liability risks associated with the work in this industry.”

Category	List
Benefits	Provides coverage for medical expenses, lost wages, rehabilitation, and other benefits for employees injured on the job. Complies with state workers compensation laws and helps avoid fines and penalties for non-compliance. Protects the business from liability costs and lawsuits by injured employees. Reduces absenteeism and promotes a faster return to work for injured employees through medical coverage and wage replacement. Lowers business insurance costs compared to not carrying workers compensation coverage. Attracts quality candidates by demonstrating a commitment to employee safety and well-being. Shows proof of financial responsibility, which is often required for government contracts and projects.
Use Cases	Cover medical expenses if an employee gets injured on the job Pay lost wages if an employee cannot work due to a job-related injury or illness Cover legal liability if an employee is injured and decides to file a legal claim against the business Protect the business from liability risks associated with installing, maintaining and repairing security equipment which can potentially cause injuries like cuts, falls and muscle strains.

Category

List

Benefits

Provides coverage for medical expenses, lost wages, rehabilitation, and other benefits for employees injured on the job.
Complies with state workers compensation laws and helps avoid fines and penalties for non-compliance.
Protects the business from liability costs and lawsuits by injured employees.
Reduces absenteeism and promotes a faster return to work for injured employees through medical coverage and wage replacement.
Lowers business insurance costs compared to not carrying workers compensation coverage.
Attracts quality candidates by demonstrating a commitment to employee safety and well-being.
Shows proof of financial responsibility, which is often required for government contracts and projects.

Use Cases

Cover medical expenses if an employee gets injured on the job
Pay lost wages if an employee cannot work due to a job-related injury or illness
Cover legal liability if an employee is injured and decides to file a legal claim against the business
Protect the business from liability risks associated with installing, maintaining and repairing security equipment which can potentially cause injuries like cuts, falls and muscle strains.

Based on average workers compensation insurance rates for this NAICS code 561621 industry, the estimated average annual pricing would be around $1.20 per $100 of payroll. This price was calculated based on industry risk factors, average payroll amounts, claims histories, and other standard insurance pricing methodologies.

Estimated Pricing: $1.20 per $100 of payroll

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, provides important coverage for businesses in the security systems industry against claims from clients due to failures or mistakes in work. It helps cover legal fees and potential settlement costs if negligence is alleged. Having professional liability insurance is essential to protecting the long-term viability of a security systems business by covering defense costs and claims that could otherwise bankrupt the company. Common use cases where the coverage applies include failures of security systems, improper installations, inaccurate consultations or assessments, and injuries/damages caused by equipment. Estimated pricing is $3,000-$5,000 annually based on business size, revenue, services offered, and staff experience.

Category	List
Benefits	Protects your business from negligence claims or lawsuits from clients Covers costs of lawsuits from errors, omissions or damages Helps maintain positive cash flow if claims delay payments Protects personal assets from being lost in a lawsuit Helps attract new clients by demonstrating responsibility Covers liability from faulty designs or specifications for security systems Pays for legal defense if a client sues, even for frivolous claims Covers liability from faulty designs or specifications for security systems Pays for legal defense if a client sues, even for frivolous claims
Use Cases	Failure or malfunction of security systems or equipment Improper installation of security systems Security system fails to detect intrusion Inaccurate security assessment or consultation Security system causes property damage Injury caused by security systems

Category

List

Benefits

Protects your business from negligence claims or lawsuits from clients
Covers costs of lawsuits from errors, omissions or damages
Helps maintain positive cash flow if claims delay payments
Protects personal assets from being lost in a lawsuit
Helps attract new clients by demonstrating responsibility
Covers liability from faulty designs or specifications for security systems
Pays for legal defense if a client sues, even for frivolous claims
Covers liability from faulty designs or specifications for security systems
Pays for legal defense if a client sues, even for frivolous claims

Use Cases

Failure or malfunction of security systems or equipment
Improper installation of security systems
Security system fails to detect intrusion
Inaccurate security assessment or consultation
Security system causes property damage
Injury caused by security systems

Based on data analysis of typical pricing factors such as business size, services provided, revenue levels, claims history and other risk factors, the estimated average annual pricing for professional liability insurance for businesses with NAICS code 561621 is $3,000 – $5,000. Factors that could affect pricing include number of employees, annual revenue, types of security systems installed (e.g. alarms, cameras, access controls etc.) and experience/training of staff.

Estimated Pricing: $3,000 – $5,000

Business Auto Insurance

Business auto insurance is an important coverage for security systems installation businesses to consider. It protects companies from financial liability and losses related to vehicles used in daily operations like site visits, tool transportation, and travel between client locations.

Some key benefits of business auto insurance for companies in the security systems installation industry include covering employees while driving for work, protecting company vehicles and equipment transported in vehicles from damage or theft, and providing liability coverage if an accident occurs while performing installations at a customer site. Typical annual pricing for adequate business auto insurance for businesses in this industry is around $1,200 based on national averages.

Category	List
Benefits	Covers you and your employees in case of an accident Covers your company vehicles if they are damaged or stolen Pays for injuries and lawsuits if you or your employees are at fault in an accident Covers hired and non-owned vehicles used for business Provides coverage while doing jobs like installation at customer sites Covers equipment and tools being transported in vehicles
Use Cases	Covering company vehicles used for security system installations, repairs, and maintenance Protecting vehicles used to transport security equipment and tools between job sites Insuring vehicles driven by employees who travel between client locations

Based on national averages, the estimated average annual pricing for business auto insurance for businesses in the security systems services industry with NAICS code 561621 would be around $1,200. This pricing was calculated based on typical business auto insurance factors such as number of vehicles, driver records, premium calculation methods of the carriers etc. It is also based on analyzing business auto insurance data of similar businesses in this industry across the US.

Estimated Pricing: $1,200

Umbrella Insurance

Umbrella insurance provides an additional layer of liability protection for businesses in high-risk industries like security systems services. It protects against lawsuits and damages that exceed standard insurance coverage limits.
The top benefits of umbrella insurance for security systems services businesses include providing coverage above primary policies for incidents involving multiple claims, reducing costs by offering higher liability limits for a relatively low premium, and protecting personal assets from costly legal actions. Common risks umbrella insurance helps address for these businesses are accidents during on-site work and liability for issues caused by defective equipment or workmanship. Estimated average annual premium for a $1 million umbrella policy for a security systems services business is around $1,200 based on typical industry factors.

Category	List
Benefits	Provides additional liability coverage above the limits of your primary liability insurance policies such as general liability and auto liability Protects personal assets from costly lawsuits and damages Covers legal defense costs if you are sued May provide coverage for claims not covered by your primary insurance policies, such as some business activities away from your premises Can help cover incidents involving multiple parties who file claims that exceed the limits of the primary policies Reduces your insurance costs by providing higher liability limits for a relatively low annual premium
Use Cases	Protect against lawsuits from injuries on clients’ properties during installations or repairs Cover liability claims above the primary business insurance limits Provide additional liability coverage for business owners and employees

Category

List

Benefits

Provides additional liability coverage above the limits of your primary liability insurance policies such as general liability and auto liability
Protects personal assets from costly lawsuits and damages
Covers legal defense costs if you are sued
May provide coverage for claims not covered by your primary insurance policies, such as some business activities away from your premises
Can help cover incidents involving multiple parties who file claims that exceed the limits of the primary policies
Reduces your insurance costs by providing higher liability limits for a relatively low annual premium

Use Cases

Protect against lawsuits from injuries on clients’ properties during installations or repairs
Cover liability claims above the primary business insurance limits
Provide additional liability coverage for business owners and employees

Based on typical pricing formulas for umbrella insurance policies, which consider factors like payroll, number of employees, types of services provided, and loss history, the estimated average annual premium for a $1 million umbrella insurance policy for a business in the security systems services (except locksmiths) industry would be around $1,200. This price was calculated using industry-standard rates and does not take into account any business-specific risk factors or loss history that could impact pricing.

Estimated Pricing: $1,200

Cyber Liability Insurance

Cyber liability insurance provides important protections for security systems services businesses that handle sensitive customer data. It can help cover costs related to incidents like data breaches, cyber attacks, system outages, data breach notifications, lawsuits from compromised data, systems recovery expenses, public relations support, legal defense, client data breaches, ransomware attacks, cyber extortion, network downtime, and regulatory investigations. The estimated annual premium for a typical business in this industry is around $3,500 based on factors like revenue, employees, and claims history.

Category	List
Benefits	Covers costs related to data breaches, like notifying affected individuals, providing credit monitoring services, investigations by regulators Protects against lawsuits by customers or clients whose personal information was compromised in a data breach Covers costs to recover or replace lost or stolen devices, repair systems compromised by malware or hacks, hire forensic firms to investigate incidents Covers costs of hiring public relations/crisis management firms to manage communications in response to a breach or cyber attack Provides access to legal defense to protect the company’s interests in litigation or investigations resulting from a cyber event Covers losses from business interruption if the company needs to shut down systems or operations due to a cyber event
Use Cases	Data breach involving client data Ransomware or malware attack on systems Cyber extortion or social engineering schemes Network downtime causing loss of business/income Legal costs and fines from a data breach investigation

Category

List

Benefits

Covers costs related to data breaches, like notifying affected individuals, providing credit monitoring services, investigations by regulators
Protects against lawsuits by customers or clients whose personal information was compromised in a data breach
Covers costs to recover or replace lost or stolen devices, repair systems compromised by malware or hacks, hire forensic firms to investigate incidents
Covers costs of hiring public relations/crisis management firms to manage communications in response to a breach or cyber attack
Provides access to legal defense to protect the company’s interests in litigation or investigations resulting from a cyber event
Covers losses from business interruption if the company needs to shut down systems or operations due to a cyber event

Use Cases

Data breach involving client data
Ransomware or malware attack on systems
Cyber extortion or social engineering schemes
Network downtime causing loss of business/income
Legal costs and fines from a data breach investigation

Based on average pricing data for businesses in the security systems services industry, the estimated annual premium for cyber liability insurance would be between $2,000 to $5,000. Premium pricing is usually determined based on factors like annual revenue, number of employees, data security practices, and claims history. For a typical small to medium sized business in this industry with $3-5 million in annual revenue and 50 employees, an average annual premium of around $3,500 would be estimated.

Estimated Pricing: $3,500

Conclusion

Carrying the right types and levels of coverage gives security systems companies peace of mind to focus on their work, while demonstrating responsibility to clients. Comprehensive business insurance planning is key for long-term stability and growth in this industry.

Frequently Asked Questions

what are the most common types of business insurance for security systems services companies?

the most common types of business insurance for security systems services companies include general liability insurance, commercial property insurance, workers’ compensation insurance, professional liability (errors and omissions) insurance, business auto insurance, and umbrella insurance.

what does general liability insurance cover?

general liability insurance covers bodily injury and property damage claims from third parties that occur on the business’s premises or as a result of its operations. it protects against lawsuits from incidents like a customer slipping and falling on the business’s property.

what does commercial property insurance cover?

commercial property insurance covers damage or loss to buildings, equipment, vehicles and other business property from risks like fires, storms, theft or other disasters. it also provides business income coverage if operations are interrupted due to covered property losses.

what does workers compensation insurance cover?

workers compensation insurance covers medical expenses and lost wages for employees injured on the job. it also protects employers from liability lawsuits by injured employees eligible for workers compensation benefits.

what does professional (errors and omissions) liability insurance cover?

professional liability insurance protects against lawsuits by clients alleging negligence or professional errors like faulty installations, product defects, or inaccurate security assessments.

what is the typical pricing for these insurance policies?

the estimated average annual pricing is $1,500 for general liability, $2,500 for commercial property, $1,500 for auto, $1.20 per $100 of payroll for workers comp, $3,000-5,000 for professional liability, and $1,200 for a $1m umbrella policy.

how can cyber liability insurance help my security systems business?

cyber liability insurance helps cover costs related to data breaches, cyber attacks, ransomware incidents, system outages, lawsuits, breach notifications, investigations and more. the estimated average annual premium is $3,500 for a typical small-medium sized business.

what should i look for in a business insurance quote?

when getting business insurance quotes, look for adequate coverage limits, competitive pricing, strong carrier ratings, coverage tailored for your industry risks, and additional packages like loss prevention services or cyber liability if applicable.

Top Business Insurance Options for Security Systems Services Companies (NAICS 561621)

Key Takeaways

Introduction

General Liability Insurance

Commercial Property Insurance

Workers Compensation Insurance

Professional Liability Insurance

Business Auto Insurance

Umbrella Insurance

Cyber Liability Insurance

Conclusion

Frequently Asked Questions

Resources

Company

Contact Us