Insuring individuals and businesses who perform the installation of protective equipment and devices for residential and commercial users have different needs of insurance services. Due to the sensitive nature of their work many companies insist on having complete information before they issue any price or proposal. This article will discuss in brief the risk involved and certain information that is required by the majority of insurance companies before a quote is issued.
Categories of Protective Equipment Installers Risk
Classes of protective devices and equipment installers may include the sales, installation and repair/ maintenance of the following:
- Local and central station burglar and fire alarm for residential and commercial markets
- Fire extinguishers and automatic sprinkler systems
- Monitoring devices including medical and emergency monitoring
General Insurance Needs for Protective Equipment Installers
Like all other businesses, these classes of business may need certain major common coverages like:
(1) Property Coverage to cover their owned building, if any owned; and their business property such as office furniture, computer and installation equipment and tools. A business property floater may be needed to cover their installation equipment while installing at remote customer sites.
(2) Workers compensation to cover work related injuries of employees and staff, in office or at installation sites.
(3) Business auto liability to cover their owned, hired or non owned auto while being used in the course of the business.
(4) Finally, and perhaps most importantly, is the commercial general liability. Protective equipment installers are exposed to lawsuits because of bodily injuries or property damage that result from:
- Defective / malfunctioning products/ devices they sell
- Defective designs they provide
- Faulty installation of the devices
- Faulty repair of protective devices and equipments.
Factors Affecting Alarm And Protective Equipment Installers Insurance Rates
1. Classification of operations. Those who install manual fire extinguishers have different rates than those who install and maintain medical monitoring devices in emergency rooms or nuclear plants.
2. Size of operations as determined by payroll of the business and total receipts/ sales. The more people involved the higher chances of causing mistakes, then the more money the business has to pay for insurance. More sales means higher probabilities for lawsuits and, thus, higher insurance rates.
3. Limits of liability. Logically higher liability limits means higher premiums. Most businesses require at least $1 million in general liability before they allow a contractor to install their protective devices.
4. Extent of operations. Some contractors do manufacture their own protective system (means they hold more responsibility for the product, hence more potential lawsuits). Also some installers may get involved with highly sensitive devices such as devices installed on aircrafts, refineries, nuclear plants, emergency rooms, etc. Rates for these people are subject to great analysis. Certain insurance companies will not want to deal with installers that deal with governmental institutions.
5. Experience of business and staff. Some companies may exclude installers with less than certain number of years of experience.
Affordable Insurance Prices for Installers of Protective Devices
Dealing with an experienced independent insurance agent is the key to getting a better price. Independent agents who deal with many companies are more resourceful than captive agents who deal only with one company, and they, independent agents, are more likely to get better insurance rates. You may check online for an experienced independent agent, or simply get a referral from an associate in the business.