The security upgrade that can help businesses cut insurance costs in 2026

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As U.S. business owners begin planning their budgets for 2026, security is emerging as a key topic in a different conversation. Instead of being treated as an expense that’s easy to postpone, it’s increasingly being looked at as a way to protect cash flow, reduce risk and avoid unexpected costs.

With theft on the rise and insurance premiums climbing, modern security — especially cloud-based video surveillance — is starting to play a bigger role in how businesses think about financial stability and long-term planning, Videoloft reports.

Retail crime is no longer an isolated issue

For many businesses, theft and vandalism are no longer rare or one-off events. They are ongoing challenges that affect day-to-day operations.

According to the National Retail Federations ‘Retail Security Survey’, U.S. retailers reported an estimated $112.1 billion in shrinkage in 2022, which includes theft, fraud and operational losses .

More recent research suggests the situation has intensified. In its 2024 report, The Impact of Retail Theft and Violence, the NRF found that the average number of shoplifting incidents increased by 93% in 2023 compared with 2019, while dollar losses from shoplifting rose by 90% in the same period.

​​Together, these findings indicate a clear trend: losses remain high, and incidents are occurring more frequently.

Smaller businesses often feel this pressure more acutely. Forbes reports that the majority of small retail businesses experience theft each year, and many owners say those losses directly influence decisions around pricing, staffing and expansion.

Why insurers pay close attention to security

Insurance is ultimately about assessing and pricing risk. When incidents are frequent or details are unclear, insurers must account for that uncertainty in premiums and coverage terms.

In practice, insurers frequently request CCTV footage during theft, vandalism, or liability claims. Legal analysis of U.S. insurance practices explains that insurers are entitled to request relevant video evidence as part of a claims investigation, and that the availability and quality of footage can affect how a claim is handled.

From a risk management perspective, video footage can help establish timelines, confirm events, and reduce uncertainty during claims reviews. Because uncertainty is a key driver of claim costs, insurers often view accessible, well-managed video evidence as an important part of the overall risk picture.

Industry guidance often highlights that professionally installed security systems — including video surveillance, alarms, and access control — can lower a business’s perceived risk profile, and some industry experts suggest that these risk reductions may be reflected in premium discounts commonly cited in the range of 5% to 20%, depending on insurer, coverage, and risk factors.

The costs that don’t always show up when you purchase

When businesses compare surveillance systems, it’s natural to focus on the upfront price of cameras or recording equipment. But over time, additional costs can quietly add up.

Traditional on-site systems often involve ongoing maintenance, software updates, IT support, and staff time spent retrieving footage. If video can only be accessed at a physical location, responding to incidents can take longer and require additional labor.

There’s also an added layer of risk when footage is stored onsite. If recording equipment is stolen, damaged, or destroyed during an incident, video evidence may be lost — making insurance claims and investigations harder to support.

A five-year Total Cost of Ownership (TCO) report published by Videoloft examines different surveillance approaches across 100 sites, with eight cameras per site, factoring in maintenance, hardware, staff time and insurance-related assumptions.

Under the assumptions outlined in the report, cloud-managed video surveillance results in a significantly lower total cost over five years than traditional NVR or server-based systems. The savings are driven largely by reduced maintenance requirements, easier remote access to footage, and lower ongoing operational overhead.

The report makes clear that results will vary by organization, but the findings reflect a broader shift toward cloud-managed systems that are simpler to operate and more predictable to budget for.

For business owners thinking in terms of return on investment, timing matters.

According to the same TCO analysis, cloud-based surveillance systems can recover their costs within months to a few years, depending on the system being replaced. Savings come from lower maintenance costs, less staff time spent managing footage, fewer on-site visits, and potential insurance-related benefits tied to improved risk management.

This allows security investments to be evaluated in the same way as other operational improvements, such as energy-efficient equipment or business software.

What to consider when planning for 2026

As businesses plan for 2026, security decisions are increasingly part of broader financial discussions. Owners are asking practical questions like:

• How quickly can footage be accessed if an insurer requests it?
• What will the system cost over five years, not just upfront?
• Would video evidence survive a fire or a break-in?
• How much staff time does the current setup require?

These are not just security questions — they’re business questions.

This story was produced by Videoloft and reviewed and distributed by Stacker.