Every business owner knows just how important it is to protect your business from burglary, vandalism, and other forms of criminal activity.
It is impossible to be too careful when it comes to the safety of your property and most importantly your staff and customers.
CCTV installation is globally recognised as one of the very best Construction site security measures you can take but an often overlooked benefit is that you could actually see a reduction in your insurance premiums after your cameras are in place.
However, this is not an exact science, and the is no guarantee on how much lower your premiums will be or even if you will receive a discount at all.
This article will give you all the information you need about how insurance premiums are calculated, the effect that CCTV installation could have, and how much you could expect to save.
Will installing CCTV reduce my insurance premiums?
A simple question, but the answer is a bit more complicated.
The short answer is yes, in most situations, but this will depend on a number of different factors.
Many insurance companies are only willing to offer a discount on their premiums if you install a monitored security system, for example.
This involves a professional security firm monitoring your CCTV, and probably your intruder alarm system, from a central monitoring station, to ensure a swift response to any emergencies.
Should a member of staff spot an introduction via CCTV or your alarm is triggered, this will immediately be registered at the monitoring station.
A team of security guards will then instantly be sent to investigate, and the emergency services notified if required.
Such an effective rapid response service will dramatically reduce the risk of loss and damages on your business premises and almost always result in a reduction in insurance premiums of some kind.
Why do insurance companies offer discounts for CCTV installation?
Insurance firms are companies just like yours and will only make a commitment if they believe that they will make a profit.
For this reason, the only time that they would reduce their premiums would be if they believe the chances of an expensive claim have been reduced also.
It could be argued that no security measure reduces the risk of a criminal claim as much as an integrated or temporary CCTV system meaning that installation is often connected directly to a fall in premiums.
Before you go any further with your CCTV installation, contact your insurer to check what system type they favour as this could play a role in deciding the size of the discount.
Remember, however, that security and safety should always come first, so if your security firm makes a suggestion that doesn’t align with your insurance company’s policy, paying a bit extra for the increased security, or changing insurance provider is your best bet.
Why might an insurance company not reduce your insurance?
Even if you do go ahead and have a CCTV system installed, this is no guarantee of a discount on your premiums.
Some companies prefer integrated monitored alarm systems over CCTV, for example, as the audio warning triggered when the alarm is activated is considered more of an active deterrent than CCTV systems that allow for observation alone.
A combination of the two, however, is even better and will almost always result in a discount.
Many modern CCTV systems come equipped with A.I technologies such as virtual tripwires that work in a very similar manner to motion detection alarms and will even issue a customisable audio warning to intruders caught on camera.
It is also worth noting that although CCTV may not act as an active crime prevention measure in the same way as a security guard, many potential intruders will be put off from targeting your site by the presence of cameras alone.
This will significantly reduce the number of incidents you have to deal with, a fact that will not go unnoticed by underwriters responsible for judging risk and determining insurance premiums.
How much can you save?
As shown above, calculating the savings you will make on your insurance by installing CCTV is not an exact science.
However, in general, you can expect to see a reduction of around 10-20% following the installation of a high-quality monitored camera set-up.
It is important to note that if your property is considered high-risk for other reasons, such as a high crime rate in the area, high debt in the company, or a history of major insurance claims, installing a CCTV system will only do so much.
There is also the upfront cost of installation to consider, CCTV system are not cheap, however, research has shown that the criminal activity they will prevent means that in most circumstances they will more than pay for themselves over time.