What are Minimum Security Requirements?
Have you ever been asked what sort of locks you have at your business or residential premises? If so, do you remember how you answered? The person you were dealing with may have just asked ”do you have 5 lever mortice deadlocks?”…and you may have asnwered accordingly.
The reason insurers ask this sort of question (sometimes they will ask you if you have an alarm and key operated window locks) is because they all have minimum security requirements built into their policy.
”What if I don’t meet the minimum security requirements?”
It’s really important that you comply with all requirements made of you in your insurance policy, especially this one. Some minimum security requirements only relate to theft claims, but others can apply to claims arising from several other causes.
There are usually three levels of security requirment an insurer can apply, and each one requires more security at your premises. For example, the basic level may only relate to locks or suitable alternatives, whereas the third level may talk about a BT Redcare alarm with level one police response (or similar).
It’s important you check when you take out a policy what level has been rquested of you. The insurer will have a section in their quote or policy that details precicely what you must have in order to be fully compensated in the event of a claim.
”But I practially can’t comply with the minimum security requirements!”
This is more common than you might think, and I regularly encounter clients who have good security at their premises, but for practical reasons, it just doesn’t quite match up with what the insurance company wants.
A good insurance broker will be able to negotiate with the insurers and get them to accept the existing level of security, or negotiate a less onerous level of security, so that if you do have a claim, it won’t be kicked out on the basis that you did’t comply with the minimum security requirements (this can and does happen!).
Take a moment to dig out your insurance policy, and just check what they are expecting you to have at your premises. If you aren’t compliant, its worth speaking to a business insurance (or property insurance) broker.