The end of BT Redcare: 12 months left

For over three decades, Redcare has been a provider of alarm signalling services, monitoring properties 24/7. The end of this service requires businesses to consider insurance coverage and take steps to maintain protection.

We must guide business owners smoothly through this transition and ensure their insurance cover remains unaffected. As a condition of coverage for many policies, commercial and residential property insurance policyholders must have an approved alarm system in place.

Here are some points to consider and advise your clients on:

1. Review current insurance requirements
You should closely review the policy documents to understand the specifics of their coverage requirements related to alarm signalling. Many insurance policies, especially those covering commercial properties, require a functioning and monitored alarm system as a condition of the insurance. Clients who fail to secure an alternative, risk being non-compliant with their insurance policy, meaning any claims may be invalid and their policy void.

Allianz advise clients to: “liaise with their alarm maintenance company to ensure that any replacement product is of an equivalent (or better) performance than the product it’s replacing and that it meets the Policy Wording and/or endorsement requirements.”

2. Seek alternatives promptly
With the Redcare shutdown date announced, there’s a limited window for businesses to seek alternatives. The sooner a new service is identified and installed, the less disruption a business will face.

3. Notify your Insurance provider
Once a new alarm signalling service is chosen, it’s essential to inform the insurance provider of the change. Keeping the insurer/MGA in the loop ensures that the cover remains valid.

4. Consider upgrades
This transitional period offers a chance for businesses to evaluate additional upgrades to their security systems. Modern alternatives might offer better technology and more comprehensive monitoring services that could enhance protection.

5. Legal considerations
Some businesses, based on their location or the nature of their operations, might be legally required to have a monitored alarm system. It’s crucial to comply with these regulations to avoid legal penalties and ensure the insurance cover is not invalidated.

The discontinuation of BT Redcare is a significant event, but it also represents an opportunity for businesses to reassess their security and insurance needs.

How we can help.

If you need guidance or advice during this change, contact our underwriting team directly.