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.