Top Mistakes Alarm Contractors Make When Getting an Insurance Quote
- Nate Jones, CPCU, ARM, CLCS, AU
- 4 days ago
- 2 min read
Getting an insurance quote for your alarm installation business may seem straightforward, but many alarm contractors unknowingly make mistakes that lead to higher premiums, coverage gaps, or denied claims.
Understanding these common pitfalls can help you secure better coverage, better pricing, and long-term protection for your business. Below are the top mistakes alarm contractors make when shopping for insurance—and how to avoid them.
1. Focusing Only on the Cheapest Quote
Price matters, but choosing the lowest quote without reviewing coverage details often leads to:
Insufficient liability limits
Missing professional liability coverage
Exclusions for alarm or security-related work
A low-cost policy may leave your business exposed when a claim occurs.
2. Underreporting Business Activities
Some contractors downplay the scope of their services to reduce premiums. This can backfire if your policy doesn’t cover:
Monitoring services
System integration
Network or smart security installations
If your insurer isn’t aware of all services, claims related to excluded work may be denied.
3. Ignoring Professional Liability (Errors & Omissions)
Alarm contractors often assume general liability is enough. However, professional liability is critical for:
Installation errors
Programming mistakes
System failures that cause financial loss
Without it, even a small mistake can result in a costly lawsuit.
4. Choosing Inadequate Coverage Limits
Low coverage limits may reduce premiums initially but can create major risks. Many commercial contracts require minimum liability limits, and insufficient coverage can:
Violate contract requirements
Leave your business paying out-of-pocket after a claim
5. Not Disclosing Employees or Vehicles
Failing to accurately report:
Employee count
Use of subcontractors
Company-owned vehicles
can lead to incorrect pricing or denied claims. Workers’ compensation and commercial auto coverage are often legally required.
6. Not Working With an Industry Specialist
General insurance providers may not understand the risks specific to alarm contractors. This can result in:
Incorrect classifications
Missing endorsements
Higher-than-necessary premiums
Wexford Insurance specializes in alarm installation and security businesses, helping contractors avoid costly mistakes and secure properly structured coverage.
Final Thoughts
Alarm contractors face unique risks that require specialized insurance coverage. By avoiding common mistakes—such as choosing price over protection, underreporting services, or skipping professional liability—you can protect your business from financial setbacks and compliance issues.
Partnering with Wexford Insurance ensures your insurance quote is accurate, comprehensive, and designed specifically for alarm contractors.
