When it comes to how to reduce business insurance premiums, most people do not realize that installing security cameras actually have a great impact. In fact, studies show that four out of ten small businesses will likely experience a claim against their property or general liability insurance in the next ten years, and among the most common claims generally topping the list are burglary and theft. Another concern are slip-and-fall accidents.
Burglary and theft impacts a significant number of small business owners, but those with security cameras experience a far lower risk of experiencing this issue. Because of the reduced risk, the presence of security cameras is an effective answer to the question of how to reduce business insurance premiums. The lower the risk of various claims your business faces, the lower your insurance premiums will likely be.
In the case of accidents on the property, liability claims may sometimes be avoided due to proof provided by security footage. For instance, if a scheming customer files a false claim against the general liability insurance policy of a business, the security footage offers irrefutable proof against their case. That is precisely the reason that an insurance company may offer a business a discount on liability insurance for having cameras in place. Because many insurance companies consider these factors in determining the prices of their premiums, the security cameras become an even greater investment.
One thing to realize in determining how to reduce business insurance premiums, however, is the fact that the security cameras need the support of central monitoring. If the security camera ties to a system that actually has the ability of notifying emergency personnel, the insurance discount will generally increase. However, if only the business owner receives notification from a security system, the discount is usually reduced.
There is a balance, then, to the question of how to reduce business insurance premiums and whether security cameras do actually play a factor. The quick answer is “yes,” but the amount depends also depends on the function of the security camera, whether it is actually tied to a full security system and how great a presence the cameras have. If the cameras are visible or the property has posted notifications that cameras are present, theft and burglary rates generally go down. This makes the cameras more of a deterrent than they would otherwise be.
Meeting the requirements
When offering a discount, an insurance company may demand that cameras are connected to a 24/7 central alarm station so that operators have the ability of sending emergency personnel in response, which mitigates any losses. Such a professional surveillance system increases the possibility of receiving an insurance discount. Still, consulting an insurance provider for clarification on the particulars of their policies is a wise business move. If the insurer does offer a discount, knowing what kind of surveillance system meets their requirements helps in obtaining the discount.
It is important to remember that the primary purpose of installing security cameras is preventing potential break-ins and reducing the risk of theft or liability. They are not simply shortcuts to paying less for insurance. Seeking insurance discounts when security cameras are already in place is a wise business move, but that should never be the main motivation for installing them.
At Ivanco, we know that business expenses are costly and that business owners need to find ways of reducing their insurance premiums. Because we install only the most technologically advanced security cameras and systems, we offer a product that helps reduce those costs. Our mission of providing only the best drives us as a company, and our clients take comfort in the knowledge that we deliver the same level of superior service in all that we do.
Call the knowledgeable team of security experts at Ivanco, Inc. today to learn more about how to reduce business insurance premiums!