Business Security Cameras: Tax and Insurance Incentives

Surveillance systems and security cameras are an integral part of any business. They protect your property, employees, and customers from any threats or hazards and provide a safety blanket that allows you to solve employee disputes or provide evidence to authorities. While these benefits are welcomed by any small business owner, security cameras also have tax and insurance incentives. Every business should have a security system, but if you’re still unsure whether you should install one, these tax and insurance benefits should sway you in the right direction.

Tax Incentives for Business Security Cameras

Among many of the revised policies and laws under President Trump’s 2018 tax overhaul, also known as the Tax Cuts and Jobs Act, is a new section that allows businesses to write off 100% of their security camera expenses. Prior to the change in tax laws, Section 179 of the tax code stated that security cameras and surveillance systems were depreciable assets. This meant that businesses could use them as a depreciable tax write-off, but they must first capitalize and depreciate the security cameras.

In 2018, that all changed. Section 179 of the IRS tax code changed security cameras and surveillance systems from depreciable assets to business expenses. The amount that a business owner is allowed to expense also increased from $500,000 per tax year to $1 million. With this tax break, owners can expect to save somewhere between 20% and 30% depending on their state of incorporation and geographic location.

Insurance Incentives for Business Security Cameras

Insurance companies want to see mitigated risks when it comes to your business. By doing so, you can effectively lower your insurance premium. Therefore, any security cameras that you install will lower your insurance premium. An insurance assessor or actuary will determine the lessened risk based on the security camera system that you purchase.

The key to lowering your risk as much as possible is to place your security system in high-traffic or high-risk areas, as well as potential blind spots where crime could be committed. The definition of the camera and how you choose to store your footage (hard drive or cloud) may also have an impact on the deduction amount of your insurance premium.

In addition, business owners should also maintain a strong cybersecurity presence in order to lower their insurance costs. As threats such as phishing and ransomware remain rampant and a true threat to businesses, insurance carriers will want to see proper cybersecurity infrastructure, surveillance, and training programs to raise employee awareness. Coupled with security cameras, a strong cybersecurity infrastructure will allow your business to maximize its insurance savings and lead to a stronger business overall.

Whether you choose wireless cameras, wired analog cameras, CCTV, or another type of surveillance system catered to your needs, the advantages go far beyond safety and security. With the money you save on insurance premiums and tax savings, you’ll have a nice nest egg for improvements, updates, new hires, and other upgrades for your business.

Contact us to get a comprehensively detailed quote for all your business security and surveillance needs. We serve the Texas area and specialize in mobile surveillance and security trailers if your application requires it.