Alarm Installers, Manufacturers, Distributors Can Expect Increased Demand for Their Services

November 2, 2021

Alarm systems are installed for protection, security, and to reduce insurance premiums. In Canada, the Security Alarm Services industry offers the installation, maintenance, and monitoring of alarm, fire, and surveillance equipment.

Residential and commercial security demand has shown to be sensitive to economic activity over the last six years. As a result of the increase in employment and per capita disposable income during most of the five-year period, cancellation rates for security services decreased and industry revenue improved, as more residential customers were able to pay for security services.

While demand for security systems will always be high, this doesn't mean needs challenges will not fluctuate within the industry. Keep reading to find out about current trends in the security industry.

Industry Overview

The Security Alarm Services industry in Canada sells, installs, monitors, and repairs residential and nonresidential security systems, such as burglar and fire alarms and locking devices. Operators also offer locksmith services.

As of 2020, security services was a $3 billion industry in Canada There were 3,897 security businesses employing 25,786 people in the country. (1)

Industry Growth Fueled by Tech Innovation

Security includes burglary prevention/detection, notification of emergencies like fires and leaks, and access control. The level of development varies greatly depending on country-specific factors like burglary rates. But a major driver of its growth is the replacement of traditional devices with connected ones. Examples include smart locks and smart security cameras.

This market is also dominated by companies from diverse industries. Besides traditional security companies (e.g. ADT) and tech companies (e.g. Canary or Alarm.com), media companies and communication providers (e.g. AT&T or Comcast) also have a critical role due to the high amount of data transferred.

The Rise of Smart Homes

The Smart Home Security segment comprises devices and services for networked access control and management for buildings and premises. A surveillance system may include security cameras and related services such as data storage and transmission, motion sensors, and programmable and remote door locks, as well as risk monitoring equipment (connected smoke detectors and humidity sensors).

Statista projects that revenue in the Security segment will reach C$433m in 2021. By 2025, revenues are projected to grow at a CAGR of 10.01%, resulting in a market volume of C$634m, and there will be 2.9 million active households in the Security segment. (2)

What’s behind this expected boost in growth? Residential construction and disposable income are predicted to drive smart home security in the next five years. High projected household ownership rates and long-term population growth are expected to drive residential construction and promote new security alarm installation.

In addition, the unemployment rate is expected to fall alongside growth in per capita disposable income, which should fuel home improvement and renovation activity, thus stimulating industry growth.

About SWG SECURE

SWG SECURE Security Services Insurance provides coverage not normally offered by traditional insurers. Businesses that provide security guard services, private investigators, alarm systems, and locksmiths as well as others requiring entry to private living quarters, need a unique type of protection.

Our program takes into account all factors relevant to your client’s situation, helping to avoid unpleasant surprises down the road. You can trust us to evaluate the complete risk picture, offering coverage for all potential exposures, including failure to perform, design errors and omissions, bodily injury, advertising liability, legal expenses, property damage, and a host of other circumstances.

You may have turned down this type of high-risk client in the past, but with South Western Group’s support, you can provide a wide range of coverage options at fair and competitive prices.

Coverage Highlights

Commercial General Liability (Occurrence Form):

● Failure to Perform

● No General Aggregate Limit

● Contractors Errors & Omissions

● Bodily Injury and Property Damage – Broad Form

● Personal Injury

● Intentional Injury in Defense of Personal Property

● Products & Completed Operations

● Care, Custody and Control

● Legal Expense & Defense Cost Reimbursement – $25,000 Each Occurrence; $25,000 Annual Aggregate

● Advertising Liability

● Non-Owned Auto (including physical damage)

● Incidental Malpractice

● Contingent Employers Liability

● Fire Extinguishing Agent Release

● Employee Benefits Liability – Claims Made – $1,000,000 Limit

● Employees as Additional Insureds

● Tenants Legal Liability – $250,000 Sub-Limit

● Lost Key Cover – $50,000 Sub-limit

● Product Recall Extension – $25,000

● Medical Payments – $25,000 each person; $25,000 each accident

● Limited Pollution Liability Extension $1,000,000 Each Occurrence & Aggregate

● Blanket Additional Insured’s Clause

● Owners and Contractors Protective coverage

Other coverages available:

● Property Insurance

● Business Interruption - Profits/Gross Earnings/Extra Expense

● Crime Coverage – Employee Dishonesty – Form A

● Fidelity – third party feature

● Employers Liability

● Mechanical Breakdown

● Errors and Omissions – Claims Made - $250,000 Limit Each Occurrence; $250,000 Annual Aggregate (higher limits available)

We cover:

Alarm and Security Installers, Manufacturers and Distributors

Home Automation, Card Access and Camera Installations

Monitoring Stations

Portable and Fixed Fire Suppression Systems (excluding sprinkler)

Private Investigators

Security Guards

Concierge Services

For more information, visit our product page: https://swgins.com/product/swgsecure.html

Content is current as of the date of broadcast and is subject to change without notice.

Sources:

  1. https://www.ibisworld.com/canada/market-size/security-alarm-services/
  2. https://www.statista.com/outlook/dmo/smart-home/security/canada