What is an intruder alarm warranty?

An intruder alarm warranty is an extremely important term that is sometimes included in an insurance policy wording.

It is basically a statement explaining that an intruder alarm, approved by the insurance company, must be in operation at the premises in question when they are closed for business, or left unattended, and that this alarm is to be kept in good working order and regularly tested. A breach of an alarm warranty could invalidate an insurance claim.

An intruder alarm warranty may be added to a business insurance policy by the insurance company depending on the value of stock or equipment at the premises and its theft attractiveness.

If an intruder alarm warranty applies to your business insurance policy, then you only have theft cover if you comply with its requirements. It is, therefore important to check your policy schedule and any quotes you receive to see if there is an intruder alarm warranty and what sort of alarm system, if any, is required.

Different insurance companies have different requirements. One insurer may require an alarm in order to provide theft cover for a risk where another will not. Or they may require different types of alarm system. If an alarm is required, the insurance company will often stipulate that it is installed and maintained by an alarm company who are approved by NSI (formerly NACOSS) or SSAIB.

It’s a good idea, therefore, to check the requirements of your insurance company before arranging for an alarm to be installed at your premises or appointing an alarm company to take over or upgrade an existing alarm system.

This is where a business insurance broker can help you. They will get you several business insurance quotes and compare the terms and conditions as well as the price. And if you have an intruder alarm warranty on your policy, an insurance broker will explain how this might affect your cover in the event of a claim.

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