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How Security Can Affect Commercial Property Insurance Rates

Jan 06, 2022

Commercial Property

How Security Can Affect Commercial Property Insurance Rates

Businesses must constantly look for ways to tighten their budgets to maximize profits. For example, figuring out how to lower rent or your commercial property insurance rate can be a major area of concern. In recent years these costs have been steadily rising as many businesses are thinking of ways to reduce workplace risks. Another way to cut insurance costs is to invest in the right security equipment.

The most important factors that affect commercial property insurance rates are

  • business location
  • property size
  • the type of equipment you store

Your region's climate is also a factor, as areas with severe storms often mean higher risks and higher insurance rates. A business that deals with hazardous materials will pay higher insurance rates due to health risks.

Effect of Security on Insurance Premiums

Investing in security equipment such as alarm and video systems is one of the most effective ways to lower insurance costs. It lets your insurer know you've taken a step to reduce the risks of theft and vandalism on your commercial property.

Risks Presented by On-Site Security Guards

A report by Security Magazine found that hiring armed guards doesn't help prevent crime and can trigger higher insurance rates. On the surface, hiring armed guards seems like robust protection, but it opens the door to possible accidents.

You don't want gunfire to break out on your property and become the site of a news event that scares people away from your business. If an on-site security guard gets injured, it can mean filing a claim and paying higher rates. Your rates may also go up if the guard accidentally injures an innocent passer-by. Even though it's usually hard to prove that a bouncer or guard is negligent for an act in keeping the peace, the possibility still exists that innocent patrons can get hurt and file a lawsuit against the establishment.

The Benefits of Automated Security

The best scenario for protecting your business while lowering instead of raising insurance costs is to invest in 24/7 automated security technology. This solution includes strategically-positioned cameras, motion sensors, and keypads. By keeping firearms off the property, you'll maintain a peaceful atmosphere while documenting suspicious activities. It will further help remind employees to respect and comply with company policies.

New security technology is constantly improving with higher resolution cameras and IoT sensors that detect human presence, facial recognition, and motion. The more you distribute sensors throughout your establishment, the more access you'll have to data that tracks suspicious visitors. It's getting increasingly more difficult for criminals to outsmart innovative technology.

Why Opt for Remote Guarding?

Working with a team of remote security guards who monitor activities on your property can reduce your insurance rates even more. This approach involves outsourcing to a firm that connects with your CCTV cameras and monitors activity through analytics software that sends alerts to remote security personnel. The solution of remote guarding makes more sense from a business owner's perspective while helping deter crime.

One way to lower your commercial property insurance rate is to invest in security technology that strengthens your protection against thieves, vandals, and disgruntled ex-employees. Talk to an experienced insurer about other possible ways to reduce your premiums. Contact our experts at Fuller Insurance Agency today. We're happy to help you find appropriate liability coverage that suits your needs.

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