Alarm dealers, at a minimum, need a general liability with errors and omissions policy, to cover them in the event of a loss. Errors and omissions protects your company from claims if a client holds you responsible for errors or failure to perform as promised in your contract. A large loss could be detrimental to a company and alarm dealers need to ensure appropriate coverage in such a case. Most dealers, however, are faced with high premiums and varying coverage.
“We don’t really have a choice…without insurance, a company is crazy,†says Leigh J. Johnson, CEO of Custom Alarm Inc., Rochester, Minn. “Is it expensive? Yes, but is gas expensive? Yes. That’s the cost of doing business,†he adds.