Frequently Asked Questions

 Can alarm companies access my program directly?
No, we feel that the local agent provides a very valuable service in all matters related to insurance. Whether the alarm company needs a certificate of insurance for one of their clients, or needs to add or delete a vehicle or employee, a local agent is the best source to handle these matters. That person should also be involved in the placement of the Errors & Omissions and General Liability coverage. So we only work through a local agent. This policy is written on an admitted basis in most states.

 Does that mean that the alarm company can't talk to the underwriter directly?
Definitely not. George Tanty, President of TRMS has been serving the insurance needs of the alarm industry since 1975. We understand this business better than anyone else in the insurance industry. So the best way to get a prompt reply to a question is to ask us directly. We can usually solve the problem or answer the question immediately. We can also authorize changes in subscriber contracts and respond to insurance requirements of potential clients. However, any policy changes must go through the agent and the agent is copied on all correspondence. 

Why is our policy form so different than the form our competitors use?
The industry standard insurance policy is referred to as an "ISO form". It is designed to be used by all subscribing insurance companies for all commercial accounts. Whether the insured is a florist in Coos Bay, Oregon or a security guard company in Fargo, North Dakota, the insurance policy will basically look the same. The problem with that form is that it does not address the special insurance needs of the alarm industry.
In 1972, a group of insurance professionals sat down with representatives of the Central Station Electro Protective Association (CSEPA) and started with a blank sheet of paper to design a policy that would address the needs of the alarm industry. With minor improvements, that form is the one we use today. It is still the only insurance policy completely designed for the sole purpose of insuring alarm companies.  

Can you give me an example of an alarm company's special insurance needs?
When an alarm company designs a system for a residential or commercial client, the customer is relying on the alarm company’s professional expertise in designing a system to address the client’s concerns and budget. The courts have long held that the rendering of this professional service falls outside of the coverage available with a standard liability insurance policy. Courts have also determined that any claim involving monitoring of any kind likewise is not covered by a standard liability insurance policy. Errors & Omissions coverage is the only insurance policy that can cover these critical exposures. It also makes no difference if the monitoring is subcontracted to an independent Central Station. An alarm company can subcontract the work, but not the liability.

 Why does your program have lower rates than your competitors?
We are the oldest continuing alarm insurance program in the United States. Since 1975, we’ve seen our competition come and go. It seems that once or twice a year some company decides to go after this business without understanding how the alarm industry is different. They particularly do not understand the importance of the alarm company's standard alarm contract form. We understand that the only effective defense in a court of law is a subscriber contract that will effectively limit the alarm company's liability. So, we only insure companies that have great contracts. Because of our insistence on good contracts, our loss ratio is much lower than the rest of the alarm programs out there. This means we can offer lower rates and still make a profit.

 Can we insure all security operations?
Yes, with some exceptions. We can do: alarm operations, CCTV, video surveillance, access control, lock & safe, patrol and portable fire extinguisher sales and service. We also cover most low voltage residential work such as intercoms and home theater. We cannot do security guards, detective or private investigators. We are also not a market for parolee monitoring, baby sitter video, employee surveillance or P.E.R.S. systems.

 Is there a contract requirement on the policy?
Yes. However, let's be clear about what that means. The subscriber contract is the best protection any alarm company has against a disastrous lawsuit. It is far more important than even buying insurance. It allows the alarm company to take advantage of the legal protections that are uniquely available to alarm companies. The use of these contracts on all work the alarm company does is one of the things that make it possible for us to offer attractive premium levels. So the alarm company ought to always use contracts because they are prudent business people who eventually want to be able to pass their company on to their heirs or sell it.
However, the policy clearly states that if the company can't find a specific contract, they will still be covered. So there is a requirement, but it asks them to do something they already do anyway. It's like an automobile insurance company asking their policyholders to wear a seatbelt.
 
How do I get a quote?
Go to our applications page and print out the appropriate applications and send it in to us. Make sure to attach a clear, readable copy, front and back, of all current alarm contract forms. Due to state insurance laws, we can only accept a submission from an agent or broker licensed in the alarm company’s state of domicile. We can usually quote within 48 hours of receipt of a complete submission.