Efficacy cover: What you need to know...

A common misconception is that the cover needs to be in place in case the product itself, like a security alarm, fails completely. But what if the product is working well but does not perform as intended? A good example here is a fire alarm. In the event of a fire there are several scenarios that could come into play. The alarm may not operate due to it not being installed correctly or alternatively it may have been fitted to the correct specifications but not monitored.

A real life example here is the 2008 fire that spread its way through the pier at Weston-Super-Mare causing damage throughout and virtually destroying the whole structure. It was later established that due to a failure in the monitoring of the fire alarm system, the fire service was not alerted until around five hours after the fire was first detected. Efficacy cover is the only way to protect against the additional damage or injury that would have occurred in this example – if the performance critical system was not operating correctly. Given the extreme nature of this case hopefully efficacy cover was in place!

Not all insurers offer efficacy cover – in fact it’s commonly excluded in respect of products or services relating to fire and security protection, performance critical functions or in hazardous areas.

(Source - Professional electrician & Installer)