The policies a security and low voltage business carries
Security installers are trusted with a customer's safety, so a camera or alarm that fails during a break-in is the claim to plan for, along with drilling through a pipe or wire in the wall. Ask your agent about professional liability for the systems you design.
| Policy | Average a month |
|---|---|
| General liability | $83 |
| Tools and equipment | $42 |
| Commercial auto | $270 |
| Workers' compensation | $160 |
| Surety or license bond | $9 |
Averages are what Insureon's customers among contractors as a group (it publishes no separate figures for security and low voltage) pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims security installers plan for
- A camera misses a break-in because it was not recording
- A drill bit hits a pipe in the wall
- An alarm sensor fails and the customer blames the install
- A customer's network goes down after setup
Ask your agent, in these words:
- Would my policy pay if a camera misses a break-in because it was not recording?
- Would my policy pay if a drill bit hits a pipe in the wall?
- Would my policy pay if an alarm sensor fails and the customer blames the install?
- Would my policy pay if a customer's network goes down after setup?
Name the work you sell
A policy covers the work you describe on the application. From the security and low voltage services list, name each of these and ask whether any is excluded: wired network (poe) camera, installed; dome camera, installed; doorbell camera, installed; ptz camera, installed; network video recorder; cloud storage; remote viewing setup; alarm panel and sensors; access control door; network cable run; yearly system check.
Testers, ladders and the parts stock on the van are the items to list. On the tools list, the items to list on the policy are cable certifier or advanced tester; tone and probe kit; poe tester; extension ladder and a lift rental account; label maker, and from the starter kit, fish tape, glow rods and a drill with long flex bits; cable stripper, crimper and punchdown tool; network cable tester; nonconductive voltage tester; digital multimeter.
State rules in the license
Security and Low Voltage work often falls under the electrical rules. Our electrical license guide lists the insurance and bond line for each of 51 states from the boards' own pages.
Alarm and low voltage work is licensed in many states, sometimes under the electrical board and sometimes under a separate alarm or security board. Our electrical license guide is the closest one we have; check your state's alarm rules too.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for contractors as a group is $160 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
Commercial clients and property managers ask for a certificate and, where the state licenses alarm work, your license number. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for contractors as a group, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
- Koira: Electrical license requirements by state (each row lists its board sources), checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.