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Given the potential range and complexity of the many types of intruder alarm systems that customers may have installed, obtaining an alarm specification (a.k.a. ‘System Design Proposal’ or ‘As Fitted Document’) and/or conducting a risk survey, is the only reliable means of establishing whether or not the alarm protection is fully suited to the perceived risk.
However, at the quotation stage of a piece of business it is rarely practical or possible to obtain the fullest alarm information, and for many smaller cases such an approach may be deemed uneconomic. So collecting a reasonable and concise set of alarm information will usually be necessary to enable an insurer to make suitable judgements about how to proceed.
The Insurance Act 2015 increases the duties on all involved in placing commercial insurance business to make a ‘fair presentation’ of risk and thus ensure greater certainty over information that insurers may rely upon. However, given the complexity of many alarm systems and the limited amount of knowledge that a typical customer or broker may hold, obtaining suitable information can be difficult.
The purpose of this guide is to help brokers focus on information that is key and reasonable to provide for any related quotation, but taking a pragmatic approach to its likely availability. To aid this process the information has been divided (below) into three tiers – each tier viewing the subject in progressively greater depth. The basic information appears in Tier 1, to which further information available from Tiers 2 and 3 may be added.
Further Information
Brokers wishing to refresh their knowledge of intruder alarms are advised to read the BIBA/RISCAuthority guidance (suggest link to BIBA technical update: ‘Intruder Alarms guidance for brokers’ 25 February 2014[?] and riscauthority.co.uk> free document library)
Tier 1 – Basic Information
Most brokers/customers should be able to reliably confirm that:
– the system covers all, or only defined, buildings, or parts of buildings, at a premises;
– the system has a current maintenance contract, provided by a NSI or SSAIB listed alarm company;
– the system is connected to an Alarm Receiving Centre (ARC), i.e. is ‘remotely monitored’ or is an ‘audible only’ system;
– the system is eligible for a level 1 police response, via a current Police Unique Reference Number (URN), and is currently receiving it (i.e. it is not under police sanctions for undue false alarms, etc.);
– the customer has appointed at least two keyholders &/or a commercial response company to attend site in response to alarm activations/faults;
– a site keybox is/is not being used to store premises keys and/or alarm operating devices, e.g. unsetting fobs, for use by keyholders or a response company.
THE ABOVE SHOULD BE ENOUGH FOR MOST INSURERS TO PROVIDE A QUALIFIED QUOTATION, i.e. subject to receipt of further information
Tier 2 – Enhanced Information
Some brokers/customers will additionally be able to confirm:
– Whether the system provides ‘confirmed activations’, e.g. via Sequential Confirmation;
– The system security Grade, i.e. 2 or 3;
– The type of Alarm Transmission System (ATS), i.e. the ‘remote signalling’, that is used to connect the alarm system to the ARC, i.e. what make it is, is it single or dual path and its performance ‘grade’, e.g. ‘grade’ 2, 3 or 4;
Note. BT Redcare, CSL Dualcom, Emizon, Webway and Chiron, to name just the main UK ATS providers, have an ever widening range of differently performing products using very similar names. It’s therefore not generally enough for an insurer to simply be informed that a system uses ‘Redcare’ or ‘Dualcom’ signalling, etc. – see also Tier 3 entry below.
– Whether any hold-up alarm facilities, e.g. fixed buttons or portable devices, are provided;
– Whether a security fog system is incorporated;
– The name of any commercial response company used, and whether they are NSI or SSAIB listed.
THE ABOVE SHOULD ENABLE MOST INSURERS TO PROVIDE A MORE REFINED QUOTATION/CONSIDERATION OF BETTER TERMS
Tier 3 – Full information
This level of additional information is usually best obtained by providing a copy ‘specification’, or having the alarm company involved complete the RISCAuthority’s ‘model SDP/AFD’ document (http://www.riscauthority.co.uk/free-document-library/RISCAuthority-Library_detail.s27-model-sdp-afd-summary-sheet-for-intrusion-hold-up-alarm-systems.html)
Nonetheless, some brokers/customers will be able to confirm the following information from their files:
– The nature and level of alarm coverage, i.e. types of detection present and their general location or number of detectors per room/area, etc;
– The precise name of the ATS used and /or its official ‘Notification Option’ performance code, e.g. 2C, 3C, 4b or 4C, etc;
– Whether any hold-up facilities use confirmation techniques;
– The means of unsetting’, i.e. how the system is unset, e.g. by code, fob or a door lock linked to the alarm.
THE ABOVE SHOULD ENABLE MOST INSURERS TO CONFIRM A QUOTATION/DETERMINE WHETHER OR NOT THEY WISH TO UNDERTAKE A SURVEY
Mike Jay,Convenor Security Group, RISCAuthority
The post Insurance Act 2015: Establishing details of an intruder alarm system appeared first on British Insurance Brokers' Association.
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