How Can Verified Security Lower Insurance Costs for Your Business?

For business owners navigating inflation, rising premiums, and tighter margins, every dollar saved matters. One often-overlooked strategy? Upgrading your commercial security system; specifically, switching to a verified commercial alarm.

Insurance companies reward businesses that reduce their risk exposure. And in an era where false alarms account for over 90% of dispatches from conventional security systems, verification has become a critical factor for risk assessment.

When your security system can confirm a real threat through audio, video, or multi-zone detection, it’s not just your property that’s better protected, your insurance company sees you as a lower risk.

Key Takeaways

• Verified alarm systems can lead to 5–20% discounts on business insurance depending on industry and provider.
• False alarms are costly to police, to insurers, and to you. Verified alarms dramatically reduce false dispatches.
• Police response is faster with verification, leading to fewer claims and lower loss ratios.
• Insurers are watching: Businesses with proactive, risk-reducing systems are more likely to receive favourable rates.
• In today's economy, verified alarms offer both protection and financial return.

Inflation and Insurance Premiums: Why Every Dollar Counts

According to a recent report from Canadian Federation of Independent Business (CFIB), half of Canadian small businesses experienced a 10% or more increase in insurance premiums over the last 12 months.

That trend isn’t slowing down. With property crime rates fluctuating post-pandemic and supply chain issues making replacement costs higher, insurers are more selective than ever. Businesses are being asked to do more to reduce their own risk, and that includes better security.

“Adding a good security system scares off burglars and tells insurance companies your business is less risky. This means you could pay less for insurance.”

– Commissionaires Canada

How Verified Commercial Alarms Reduce Risk (and Premiums)

Here’s why verified alarms help lower insurance costs:

• Reduced False Alarms: Verified systems use live audio or video to confirm whether a break-in is actually happening. This reduces false alarms, a major drain on law enforcement and a red flag for insurers.
• Faster Police Response: Police departments across Western Canada, including Alberta RCMP and Calgary Police, now require verification before dispatching officers to alarm calls. Verified systems trigger Priority 1 response, reducing damage and losses.
• Improved Loss Ratios: Fewer successful break-ins mean fewer claims. Verified security systems help minimize downtime, shrink damage, and reduce theft, all of which factor into your loss ratio with an insurer.
• Higher Deterrence: Criminals are less likely to target businesses with verified protection. According to Sonitrol data, businesses with verified alarms experience dramatically higher apprehension rates, reducing repeat crimes and claim history.

What Insurance Providers Look for in a Verified System

While requirements vary, most insurers will consider discounts or favourable terms for security systems that include:

• Real-time audio or video monitoring
• 24/7 central station with human verification
• Documented response rates and protocols
• Compliance with local police verification policies
• Proof of maintenance and system self-testing

If your provider doesn't ask about these yet, they will soon. Risk-based pricing is becoming the norm.

Verified Security in Action: A Competitive Advantage

Let’s say you're a high-value retailer paying $8,000 per year in commercial property insurance. If switching to a verified alarm system earns you a 15% discount, that’s $1,200 in annual savings, not including the cost savings from avoided break-ins or denied claims.

Now consider that a verified Sonitrol system may cost less than that per year, with 24/7 monitored protection included. For many businesses, this upgrade pays for itself before you even experience a crime.

Ready to reduce your insurance costs and protect your business? Request a verified security audit by clicking the button below. 

FAQ: Verified Alarms and Business Insurance

1. How do verified alarms lower my insurance costs?

Verified alarms reduce the frequency and severity of losses by preventing break-ins and catching criminals faster. Insurers reward that lower risk with reduced premiums.

2. What qualifies as a “verified” alarm?

A verified alarm includes audio, or monitored video that confirms a real break-in. Unlike traditional alarms that only sense motion or door openings, verified systems can be assessed in real-time by a monitoring centre.

3. Do Canadian insurers recognize verified alarms?

Yes. Many commercial insurers in Canada now encourage or require verification in high-risk industries (retail, cannabis, construction). Discounts vary, but most recognize verified systems as a risk-mitigation strategy.

4. How much can I save on insurance?

Savings typically range from 5–20%, but depend on your provider and risk profile. Some insurers also waive deductibles for verified systems that lead to apprehensions or damage prevention.

5. Can a verified system help if I’ve already had break-ins?

Absolutely. Installing verified alarms can demonstrate proactive improvement, helping secure continued coverage or better renewal rates even after a claim history.

6. How do I get started with verified security?

Request a security audit from Sonitrol Western Canada. We’ll assess your risks, current system gaps, and design a verified solution that meets insurance and police response criteria.