Business Insurance Query

[Gist]

I'm looking into setting up in security.

I'd just like a rough idea on how much a clients company could save on their insurance, if they had a pair of guards patrolling the external of the premises (and internal where required), on a regular basis throughout the night/weekend/bank holidays.

The reason I'd like this information, is that I've worked out nearly all costs to my venture, but need to know if it would be worthwhile; my way of thinking - if security costs more than current insurance difference without security, then no sale (or how many clients I expect before money is made).

What I'm able to provide (once I start), is keyholding, rapid alarm response (within 15 mins max), and regular patrols, all for a flat monthly fee. (ie, no extra charges for having someone sit waiting for engineers/repairers).

I can't find anything on the net to help with this, without pages of form filling.

 

[oldeagleeye]

2 external + 2 inside so 4 guards on 12 hr shifts. Lets get real. That works out at least £3500 a week. A whooping £175,000 a year.

Have you ANY idea how much the SME pays for a mid sized warehouse. I doubt if it comes to £5K a year. It don't make didly squat what discount he got then but in general insurnce companies give up to 5% for higher than average security measures.

The security business these days is highly competitive and setting up as a one man band is qujite frankly a no brainer.

Rob

 

[Gist]

Being completely realistic, you must have speed read. I know my expenses (majority wages). Having ten years experience within the industry, I know a fair bit, a lot of clients never used to disclose the savings they made on their insurance though, I were always told either 'without you, we wouldn't get insurance' or 'only a little bit'.

Thanks for the reply though. 5 percent doesn't seem that great of a saving for the smaller companies.

 

[Simply Business]

Hi Gist,

The subject of additional security is something that most insurers will ask your potential clients about when they are getting quotes for insurance. We ask about red care gsm, dual com, digi com etc - and if a client can then also add that they have the property regularly checked / protected by security guards - it is something that we would definitely look to incorporate into a quote. That said - the main selling point of security guards when considering insurance is that the chances of a claim for theft or malicious damage decrease - meaning that your potential client isn't having to pay out excesses and have their no claims affected. Prevention is better than cure!

Kind Regards
Tim
Simply Business

 

[Astaroth]

I would be surprised if there are many circumstances where the majority of businesses would actually save sufficiently on their insurance premiums to off set the cost of security.

As XBridge says, insurance is the fall back and there to minimise the cost of an insured incident after it happens. The vast majority of people/ businesses would rather the incident never happened in the first place - you make more money selling your stock than having it stolen.

 

[oldeagleeye]

Reality check. I am negiociating with 10 of the top insurers in this business as I am about to launch a fully fledged Business Continuity package for the SME.

This involves accessing the risks on eeverything from climate chage to disasters like fire - flood and theft. Then we advise on steps to minimise those risks but that is not all.

When it comes to protection we include unlimited on-site maintenance of all IT equipment drastically redusing the risk pof a claim. We provide emegemgency office space & telecom's - drastically reducing the value of the claim on business disrumption insurance.

In short the insurance companies love us. They have already agree that we can call in our own loss adjusters. All that is left is to negociate a discount for our clients and in times when all insurance premiums are increasing I am looking at a max of 10%.

That for most of my clients will work out @ £150 quid.

The bottom line is then that yes the insurance companies will take into consideration like hig-tech security and static and or patrolling guards.

In fact where high risk consumables are concerned they will insist on them. They are NOT however going to give the customer a huge discount for taking reasonable precautions.

What is even more important to you OP is that insurance discounts are not going to be a decision maker in employing you and make no mistake. The fact that this would be a new business is going to work against you.


Rob.

BTW. Anyone know how much a key holding service costs and doed the company send someone to the scene lets say of an alarm going off or does an employee have to collect it themselves.

 

[KZCS]

BTW. Anyone know how much a key holding service costs and doed the company send someone to the scene lets say of an alarm going off or does an employee have to collect it themselves.

I spent a number of years as a Mobile security Patrol, we kept the keys in a safe bolted to the vehicle and attended alarm activations, which had to be in a twenty minute response.
Bit rusty , but if i remember correctly, the charge for key holding was minimal, and sometimes free. The charges were for the time on site, starting with a call out charge , which covered the first half hour, plus further charges for each additional half hour or part of if an alarm engineer was required.
Some customers would have their own key holder attend and the patrol unit was there as an escort.
OP I can't see how you would make anything by not charging for the extra time on site, I have personally waited up to four hours for an alarm engineer.:|

Steve