Insurance is an important part of life for most adults. It’s never exciting, yet it’s so important that it’s required by law in many instances. For situations where a potential loss would severely impact one’s ability to recover financially, insurance is a worthwhile safeguard even if it never has to be used. At the very minimum, the peace of mind it can provide is worth the premium.
While we pay for insurance regularly without even thinking twice, many organizations and individuals don’t give more than a few minutes thinking about their security systems and security policy. This is extremely relevant because an effective security system and security policy provides very similar protection that an insurance policy would.
Similarities between Insurance Policies and Security Systems
Both feature an up-front, and sometimes recurring cost that aims to protect against catastrophe, damage, and harm.
Both are items that ideally will never need to be used, but can be life-saving in worst-case scenarios.
Both provide mental peace of mind knowing there is a layer of protection and safety.
When you really think about it, it’s somewhat silly that physical security is not more commonly viewed as another form of insurance. Additionally, given that security systems and policies protect against more than just financial harm, they are potentially even more important as nothing is more valuable than people’s health and wellness.
Security Policy is Preventative, as Opposed to Reactive
One critical component of security systems and security policies that differentiate them from insurance policies is that security is actively preventative as opposed to reactive. Insurance can only issue payouts after the damage is already done, leaving the victim with a lot of non-financial problems that they still have to manage.
From this perspective, you could argue that preventative safety and security systems are potentially more valuable than insurance is.
When Budgeting, Include Security in With Insurance Expenses
Since insurance and security policy have so many similarities, we suggest revisiting your budgeting process. Security policy is critically underrated in terms of it’s value to organizations, so by including it within your insurance budgeting, you’ll be able to better allocate budget to what is actually most important. This will also help you to not forget or overlook security when building an annual budget. And finally, by including it with insurance products, you’ll get a good perspective on what the costs and premiums are to protect (or insure) what’s most important to you.
Next time you consider where you are budgeting for insurance, it may be worth asking yourself where your organization is truly most vulnerable. For many organizations, the amount that can be lost from a devastating burglary, physical attack, or sabotage effort can be far greater than what any insurance policy could ever hope to pay back in reimbursement. We hope that by changing one’s perspective of security, organizations can better protect themselves and increase their resilience.