Can security systems such as access control and CCTV decrease
commercial insurance premiums?

My company integrates access control, electronic article survelliance,
and CCTV systems.  We are trying to pitch to our clients that our
systems can lower their insurance premiums.

For instance, our CCTV systems provide real-time monitoring, alarms
based on motion detection or perimeter violation, as well as digital
recording.  Our systems dissuade would-be violators, captures others
in the act in addition to providing clear evidence for prosecution and
punishment.

For instance, our access control systems provide computerized
regulation of who can enter facilities.  The system can provide
authorization by time of day, day of week, individual doors, etc. 
Furthermore, the system can automatically disable user authorization
as needed.

Please provide an overview of how such systems can reduce insurance
premiums.

I am only offering $10 as a starting point.  This should cover someone
doing a generic internet search for basic information.  If you have
insurance industry knowledge that can be of benefit, please comment
and I will increase the offered price and/or offer a large tip.

Thank you.

<The installation of security systems like CCTV and access control can
lead to considerable savings in insurance costs. The discounts offered
vary from one insurance company to another and depend on the personal
circumstances of the business involved. Typically discounts offered by
insurance companies are between 5 and 15%. Getting the best deal from
an insurance company often involves shopping around and negotiating
with an insurance agent.

According to Michigan cctv installers, Michigan cctv installers the
installation of cctv has the benefit of permamently low insurance
premiums with insurers giving between 5 and 10% discount. See
http://www.asginvestigations.com/cameras/

After installing CCTV, the Huntsville Alabama school system saved
$700,000 in insurance premiums in two years. They also saved $6
million dollars of losses previously incurred for fire, theft and
vandalism. See http://www.securitymanagement.com/library/000095.html
and http://www.nograffiti.com/files/Security.html


The installation of CCTV and other security measures has reduced
insurance premiums for Derbyshire County Council from £2.2 million a
year to £300,000. Other benefits were cuts in claims for fire, theft
and vandalism. See http://www.derbyshire.gov.uk/news/99/june/990601ss.htm

According to Premier Securtiy Inc., insurance companies offer between
5 and 15% reductions in premiums when a monitored security system is
installed.
http://www.pschamber.org/edc/work.htm

The Best Insurance Quote Guide says that Insurance companies often
offer discount to business owners who have installed security systems.
http://www.best-insurance-quotes-guide.com/R_insuring_your_home_business.htm>


Search strategy:
<"insurance premiums" reduction cctv>
<://www.google.com/search?q=%22insurance+premiums%22+reduction+cctv&hl=en&lr=&ie=UTF-8&start=0&sa=N>

<"save money" cctv "insurance premiums">
<://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&as_qdr=all&q=%22save+money%22+cctv&as_q=%22insurance+premiums%22>

<cctv "access control" savings insurance>
<://www.google.com/search?q=cctv+%22access+control%22+savings+insurance&hl=en&lr=&ie=UTF-8&as_qdr=all&start=0&sa=N>


<Hope this helps.>

---

Request for Answer Clarification by jr1734-ga on 08 Mar 2003 09:43 PST

This is a very good answer which will help me significantly.

Can you share with me any links from insurance companies or insurance
industry periodicals that discuss how security systems lower premiums?

If you can do so, I will add a $10 tip.

Thanks.

---

Clarification of Answer by belindalevez-ga on 08 Mar 2003 14:32 PST

<Insurance Finder explains  that an insurance company bases insurance
premiums on the risks involved. To do this, they evaluate the
situation to determine the risks, or potential for losses. The
insurance company determines its rates on the results. It quotes
advice from the Independent Insurers Association of America on how
businesses can reduce insurance costs by reducing risk. One of its
suggestions is to install adequate security devices.
http://www.insurancefinder.com/businessinsurance/businessinsurancetips.html

A feature by Mike Kriedler, Washington Insurance Commissioner says
Don’t forget as you shop for coverage that some discounts are
available. For example, businesses that invest in security systems or
fire-protection devices may receive discounts from their insurer.
http://216.239.51.100/search?q=cache:5lvQv3LRrfgC:www.insurance.wa.gov/smallbizfax.htm++discounts+%22commercial+insurance+%22+-uk+security&hl=en&ie=UTF-8


A feature written by Avenda Burnell Walsh contains a quote from an
insurance company. Speaking for Norwich Union, Teresa Budworth says:
'The premium depends on a number of factors including the client's
actions to manage those risks. We tend to look for good physical
perimeter protection, including sound doors, windows and locks -
reinforced as necessary. Intruder alarms also have a significant role
to play in providing effective security. We consider CCTV to have good
deterrent value,' adds Budworth, 'and we would consider it in the
context of a number of other factors in evaluating risk of theft from
a premises.' For Norwich Union, biometrics is a watching brief: 'With
any newer methods of protection we would tend to await fuller
evaluation and testing, plus the benefit of experience, before
endorsing them,' says Budworth.
http://www.avendaburnellwalsh.com/articles/538.html>

<Additional links:>
Catastrophes happen.
<http://www.nase.org/news/sea/vol10iss5/catastrophe.html>

<Hope this helps.>