Insurance Implications of the Landline Switch-Off in 2025
13 June 2023
In December 2025, a significant change is set to take place in the UK telecommunications landscape. British Telecom (BT) will be switching off the old analogue public switched telephone system, which has been a reliable mode of communication for businesses and individuals for many decades. While this transition marks a step towards the future of telecommunications, it also brings certain implications from an insurance perspective. Businesses must take proactive measures now to ensure that their operations and insurance coverage remain intact post-switch-off.
The Impact on Fire Alarms and Security Systems:
One of the critical areas that may be affected by the landline switch-off is the functionality of fire alarms and security systems. Many traditional fire and security systems are connected to landlines for monitoring and communication purposes. These systems rely on a landline connection to transmit signals to monitoring centres or trigger necessary responses in case of emergencies. With the termination of the old landline, these systems could potentially become non-functional.
The potential implications of non-functional fire alarms and security systems maybe a cause for concern from an insurance standpoint. Some of our commercial insurance policies, require businesses to have adequate fire and security measures in place to mitigate risks. These measures often include functioning fire alarms, security alarms, and monitoring systems. Failure to meet these requirements may result in insurance coverage being invalidated or compromised.
Taking Pre-emptive Action:
To ensure the continuity of insurance coverage and mitigate any potential risks associated with the landline switch-off, policyholders are strongly advised to take pre-emptive action. Here are some steps that brokers and policyholders should consider:
Conduct a Risk Assessment: Businesses should assess their existing fire and security systems to determine whether they rely on landline connections. Identify the systems that may be affected and prioritise the need for alternative solutions.
Consult with Alarm and Security System Providers: Policyholders should engage with alarm and security system providers to discuss the impact of the landline switch-off and explore alternative communication methods. Many modern systems now offer wireless or internet-based connectivity options that can replace landline connections.
Upgrade or Replace Systems: If a policyholder’s existing fire or security systems are incompatible with wireless or internet-based connectivity, policyholders should consider upgrading or replacing them with newer models that align with the changing technology landscape. This ensures that systems remain operational and compliant with insurance requirements.
Notify broker: Once the necessary upgrades or replacements are made, policyholders should inform their insurance broker about the changes you have implemented. Provide documentation or evidence of the upgraded systems to ensure that their coverage remains valid.
Review Insurance Policies: Policyholders should take the opportunity to review their insurance policies with their broker to ensure they align with the changing landscape. Understand the coverage requirements related to fire and security systems and make any necessary adjustments to ensure compliance.
The impending landline switch-off by BT in December 2025 necessitates proactive action from businesses to safeguard their insurance coverage and mitigate potential risks. Specifically, fire alarms and security systems that rely on landline connections may become non-functional, potentially invalidating insurance policies. By conducting risk assessments, consulting with alarm and security system providers, upgrading or replacing systems, and notifying insurance providers, businesses can ensure the continuity of their coverage and adapt to the changing telecommunications landscape. Being prepared is key to maintaining business resilience and protecting against potential losses in the future.
For more information visit the BT website