Defense Spending

 

Does your company's security system need upgrading? U.S. business is hit by burglars more than 1 million times a year. Yet, security experts maintain that small businesses, especially those that are expanding, tend to be underprotected.

"Most smaller businesses are unprotected because they either take the cheap way out, or are naive about security," says Stuart Glickman, president of Security Alarms & Fire Engineering Inc., in Davie, Fla. "You should reevaluate and probably upgrade security if your company has grown."

The incentives for upgrading alarms go beyond security. Purchasing a new system qualifies the company for a 10% investment tax credit. And a wide range of insurance discounts are available if you improve security, sometimes up to 40%, depending on the sophistication and cost of the system. "The best time to rethink your security is when you sit down each year with your insurance agent to review your policy," says Glickman.

James O'Brien, sales representative for Liberty Mutual Insurance Co. in Boston, notes that the most important factor as far as discounts are concerned is to make sure your equipment is approved by Underwriters Laboratories. "If you buy a system from a fly-by-night security company that isn't UL-approved, there's a good chance your insurance company won't recognize it as eligible for credit," says O'Brien. "I know some companies that bought expensive but unapproved systems, and they're kicking themselves now."

Better security does more than stave off thieves -- it also protects property from damage. Often, intruders inadvertently destroy important files and records, or stumble onto hazardous on-site materials. Continental Technical Finishes Corp., a $6 million paint-maker in Brooklyn, N.Y., updated its antiquated security system after discovering the brazenly destructive lengths thieves often go to for minimum gains.

"It amazed us the work burglars would do just to steal a typewriter," says Sandy Fleisher, vice-president of Continental. "They'd break in two or three times a year. At our office, they would crash right through a cement wall. At our factory, they would come through the roof. A break-in at the factory could be very dangerous, because we manufacture paints and deal with flammables. A clumsy burglar could light a cigarette and blow himself up, and the plant with him."

Continental installed infrared motion detectors in its offices and photoelectric eyes on its factory roof. "Both systems have been very effective -- we haven't had a single break-in," Fleisher says. "Before we put them in, we just had magnetic door contacts, which is old technology."

Demand for beefed-up defense against break-ins has led to innovations in security hardware, ranging from the basic to the elaborate. However, it is sometimes difficult to gauge needs and keep pace with technology.

"The type of security you need depends on what kind of business you run," summarizes Stephen Sultan, vice-president of sales for Alarmingly Safe & Sound Inc. in Hollis, N.Y. "Every business is different, and you can't generalize costs or types of systems. The first thing to do is look in the Yellow Pages or ask a counterpart to recommend a company, and call a professional security consultant. Have him conduct an inspection. Most reputable companies will do a consultation for free."

Sultan concedes that it is often difficult to stay abreast of new security hardware, but he laments the fact that "most businesses install good security only after they've been hit. Improving security should be preventative, not reactive."