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Residential Insurance Requirements For a Monitoring Center

Sep 24, 2019 8:01:00 AM

Insurance coverage for a monitoring center is vastly important. Having the proper insurance coverage can save your company from paying a fortune out of pocket for bodily harm, property damage, advertising damages, and false warranties and guarantees. So, what coverage does monitoring center need in order to be properly covered?

Types of Insurance

In order to be properly covered to monitor residential customers, your central station alarm company needs to have, at a minimum, general liability insurance coverage and a professional liability policy.

General Liability

This protects a central station alarm company from the following:

  • Third-party bodily harm – Your company is protected if someone comes onto your company premises and gets injured. For example, a dealer trips walking into your building and breaks their arm. The general liability will help cover the costs of the bodily harm caused to the third party.
  • Third-party property damage – Let’s say a technician has to drill a hole in a wall to run some wire. As he is drilling, he punches a hole through the wall and the other side of the wall is a neighboring company. The damage to the neighboring company will be covered with general liability insurance.
  • Advertising damages – If it happens that your company runs a questionable ad, or runs the risk of plagiarizing or copying another company’s advertisement, general liability can help protect you from the potential costs in the event of a lawsuit.
  • Reputation harm – In the event that another company feels as though your company has damaged their reputation, the insurance covers any potential damages and costs. This could happen by writing an article with discouraging words about another company, and the company suing for reputation damages.

Professional Liability

Professional liability is equally as important as general liability, but often times, central station alarm companies don’t have this coverage. This policy protects against:

  • Things your employees say – Think of this as how a doctor has insurance against medical malpractice. If a doctor told you if you ate almonds everyday, you won’t have a heart attack, but then you have a heart attack, even though you ate almonds everyday, you could potentially sue the doctor for saying that. Same goes for your alarm monitoring center. If you or your employees say something erroneous to a customer, this insurance policy protects you from consequential damages.

Other Insurance Coverage

The two main insurance policies that your alarm monitoring center needs are general liability and professional liability, but there are additional policies that can further protect you from potential damages.

  • Property insurance – This can protect your company from damage to the premises from things such as fire and burglary.
  • Business vehicle insurance – This protects employees and the company when they are operating a company vehicle.
  • Workers compensation – If an employee gets hurt on the job, this will help provide coverage for their medical costs and money for lost wages while they are away from work.

AvantGuard keeps the proper insurance, and continues to excel with their outstanding dealer care and monitoring services. If you want more information on how AvantGuard is the right choice for your third-party monitoring needs, you can reach out here.

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