Getting Ready for BT Redcare Closure: Insurance Tips for Alarm Installers

As the alarm industry braces for the closure of BT Redcare services, alarm installers face operational and insurance challenges. 

With the looming deadline of August 1st, 2025, it’s important for alarm companies to ensure they have the correct insurance coverage to navigate this transition smoothly and protect their business and clients’ interests.   

Failure to have the appropriate coverage or failure to meet your insurer’s requirements could leave businesses vulnerable, invalidating insurance policies and exposing them to financial risks.    

But what are the key considerations and coverage options alarm installers need to consider in this transition?   

We sat down with Fiona Hankinson, an Account Executive at Darwin Clayton, to talk about the impact the BT Redcare closure will have on alarm installers.   

Product Efficacy Insurance: A Vital Protection for your business   

If you have clients who have BT Redcare system and you transition them to an alternative system and if there is some issue with the product, you will need to ensure that your company is covered by product efficacy insurance.   

Products efficacy is an important cover to consider during this period of BT Redcare Closure when changing the alarm systems for your clients.   

This will cover businesses in case of the failure of the product to do it’s intended function, ensuring they are not liable for any resulting damages or losses. To ensure you are covered and your policy stays valid, you will have to make sure that the system is installed properly and maintained according to NSI or SSAIB standards.    

The new system that you install should meet all insurer’s requirements. By maintaining compliance and implementing proper installation and maintenance procedures, alarm companies can mitigate the risk of claims related to products efficacy issues.   

Professional Indemnity: Shields against claims of wrongful advice   

In addition to product efficacy insurance, alarm installers should also consider professional indemnity coverage.    

This insurance will cover businesses against claims from alleged wrongful advice or professional negligence. As alarm installers offer guidance to clients during the transition away from BT Redcare, professional indemnity insurance becomes more important in safeguarding businesses from potential legal liabilities.   

Proactive Client Communication   

All alarm companies should notify their clients that The BT Redcare system will be withdrawn on 1st August 2025 and offer guidance on transitioning to alternative solutions. By proactively informing clients and addressing any concerns they may have, alarm installers can foster trust and mitigate potential disputes down the line.   

Start the transition process immediately   

Concerns about hardware availability and supplier capacity suggest that delaying action could lead to difficulties in finding suitable alternatives. Operating without an alarm system for a period of time could invalidate client’s insurance policies. You should act now to ensure that clients systems are updated before the deadline.    

Recommended Coverage for Alarm Installers   

Alarm installers should prioritise the following insurance coverage:   

• Product Efficacy Insurance: Can help cover against product failures.   
• Professional Indemnity Insurance: Can help cover against claims of wrongful advice or professional negligence.   
• Public Liability Insurance: Provides coverage for third-party bodily injury or property damage claims.   

Ensuring Alarm Installers are geared for the BT Redcare Switch   

In conclusion, the impending closure of BT Redcare services highlights the importance of comprehensive insurance coverage for alarm installers.    

By ensuring they have the appropriate insurance in place, alarm companies can confidently navigate this transition, protect their business interests, and provide clients with peace of mind during this period of change. Proactive risk management, adherence to industry standards, and effective client communication are key pillars in safeguarding alarm installers against the challenges posed by the BT Redcare closure.   

If you have any concern about your insurance cover, please feel free to get in touch with the friendly team of alarm installers insurance professionals at Darwin Clayton. You can contact them at: info@dcuk.co.uk