The alarming truth about business insurance (a security compliance guide)

If you’re looking to reduce your business insurance premium cost or meet an insurer’s security requirements by installing an alarm or CCTV system, then it pays to know the facts. 

Not all alarm and security systems are born equal – your insurer might not pay out if you haven’t met their criteria (rules). 

Business insurance isn’t that different to holiday insurance – there are rules – it is a bit like investing in jet ski lessons only to realise your insurance doesn’t cover watersports. So you have to play by the rules to be covered (being compliant).

In short, you need to have your alarm installed by an insurance-approved company. That means that the equipment, method of installation, and ongoing maintenance and monitoring are to British Standards. 

Beware of small print. It’s not exciting, we know, but it’s better to be safe than sorry.

Insurance-approved security systems (small print)

Insurers often stipulate that your security systems must meet the following criteria: 

• SSAIB- or NSI-certified alarm installer.
• Grade 2 or 3 alarm equipment.
• Installation of British Standards (BS8243) and police response.
• Alarm monitoring to British Standards (BS9518) and Alarm Receiving Centre (ARC) with key holder or fire brigade response.
• Regular alarm maintenance to British Standards (BS9263).

You can find more information on each of these standards below.

SSAIB- or NSI-certified alarm installer

Start with choosing an SSAIB- or NSI-certified alarm installer. 

They are professionals certified by the Security Systems and Alarms Inspection Board (SSAIB) or the National Security Inspectorate (NSI). They are experts in installing and maintaining security alarm systems that meet British Standards. 

Hiring an SSAIB- or NSI-certified installer can ensure that your property is adequately protected and may also help you avoid higher premiums or coverage denial from your insurer.

Grade 2 or 3 alarm equipment

And don’t forget to buy insurance-approved security systems – grade 2 or 3. It’s easy to pop on to eBay or Amazon and grab a system, but sub-standard security systems could void your insurance policy. 

Grades 2 and 3 indicate that the equipment has been tested and certified to meet specific security standards. 

Installation to British Standards (BS8243)

When it comes to security systems, there are a lot of British Standard numbers, which each give guidance from a governing body on the way alarm systems should be installed. For BS8243, there is guidance on the design, installation and configuration of intruder and hold-up alarm systems designed to generate confirmed alarm conditions.

Each British Standard has a code of practice number (the why) – 13.310 protection against crime. 

This British Standard gives recommendations for the design, installation and configuration of intruder and hold‑up alarm systems that incorporate alarm confirmation technology, where such have signalling systems that signal to an alarm receiving centre (ARC) and require a police response.

It includes recommendations intended to minimise the likelihood of false alarms. As you can imagine, the police get a lot of false alarms for properties, which takes up valuable police time. 

Alarm monitoring to British Standards (BS9518) and Alarm Receiving Centre (ARC) with key holder or fire brigade response.

An Alarm Receiving Centre (ARC) is a company that remotely monitors your company’s alarm and CCTV systems and can trigger alarms and confirm an intruder. As you can guess, this is another way of giving you peace of mind as a business owner and avoiding unnecessary callouts from the police – it’s governed under BS9518.

Code of practice category 13.320 – Alarm and warning systems.

This British Standard gives recommendations for the processing of signals by an alarm receiving centre (ARC) from alarm systems, such as but not limited to fire detection and fire alarm systems, fixed firefighting systems, intrusion and holdup alarm systems, video surveillance systems, social alarms systems, lone worker, and combinations of such systems.

Regular alarm maintenance to British Standards (BS9263)

And finally, it’s important to maintain your security systems, and yes, there’s a British Standard for this, too. BS9263 is concerned with maintenance and remote support.

Code of practice category 13.310 – protection against crime.

This British Standard recommends commissioning, on-site corrective and preventative maintenance, remote system checks and remote support.

This British Standard applies to all security and fire systems under maintenance, including those installed in accordance with BS EN 50131.

At West Mercia Security Ltd, we’ve been fitting alarms for over 40 years, and we’re insurance-approved – with SSAIB certification. Email us at email us or call 01384 396316.

You can see how we helped one of our customers with an insurance-approved installation here.

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