Table of Contents
Security guard insurance is important for your business. Let’s take a look at what it covers, how much you could expect to pay, and the various providers available.
The “Security Guard Insurance” is an insurance policy that protects the individual or company against financial loss in case of a security breach. The policy includes coverage for legal defense, medical expenses and other related costs. Read more in detail here: what insurance does a security company need.
Security guard insurance includes general liability, professional liability, commercial property, and workers’ compensation for security corporations and single proprietors. While a security guard firm may get all policies from a single carrier, security guard insurance is made up of many products. The total yearly minimum premium for all needed coverage is roughly $6,000.
Providers of Security Guard Insurance
Security guard insurance is available from major carriers or speciality brokers that specialize in the industry’s concerns. Major carriers are better suited to lower-risk security firms with less bystander engagement. Companies that service heavily crowded regions or events such as clubs, concerts, and fairs benefit from specialty suppliers.
Top Providers of Security Guard Insurance
The carriers on this list have a “appetite” for this kind of danger. That they recognize it is a higher-risk class and have taken the effort to completely build a program that fulfills the demands of security firms at the most competitive rates feasible. This is a risk that not every carrier wants on their books.
The following are five firms to contact for security guard insurance quotes:
Insurance321
Insurance321 is an easy-to-use internet insurance marketplace that helps small companies acquire specialist coverage, such as security guard insurance. You may contact an expert who will link you with an insurance provider via their simple-to-use website. Representatives at Insurance321 take the time to understand about your security firm’s unique risks, and their technology finds the best supplier for you.
Making that link quickly may save security companies time by allowing them to avoid having to fill out several insurance applications. As a result, Insurance321 is a suitable choice for companies in need of coverage rapidly. In as little as four minutes, you can acquire numerous insurance rates and reasonable coverage to ensure your company is protected.
GuardPro
GuardPro is the only brokerage with policies that cover security guard businesses in all 50 states and expanded territories, making it the premier firm for security guard businesses in the United States. This specialist insurer, backed by Venture Pacific Insurance Company, has credibility, insight, and experience in the security field.
While GuardPro works with some of the country’s most seasoned security firms to secure concerts, airports, and public events, they specialize in assisting young security firms in getting off the ground. GuardPro strives to make insurance for security firms as simple as possible and to search for better prices based on corporate milestones.
AMIS / Alliance Marketing & Insurance Services
AMIS / Alliance Marketing & Insurance is a specialty insurance broker that has been serving the high-risk industry of security for more than 50 years. They cover all lines of insurance for security company consultants, guards, private patrols, armored car operations, and private investigators.
AMIS is the best choice for a security guard firm that wishes to engage with an insurer that has inside knowledge of the security sector. This is an insurance business created by someone who also owns and operates a private investigative firm. Small and big security organizations may use customized packages to obtain the correct coverage for the numerous circumstances that security personnel may encounter.
a dependable option
a dependable option is a major commercial insurance carrier that works with many industries and companies, both large and small. They understand the risk involved in security companies placing specific importance on cyber security and employee practices. a dependable option offers all lines of insurance, including workers’ comp and professional liability.
a dependable option is a good carrier for a security company with added exposure with well-known clients. A security company that has a wide range of clients, including firms that patrol low-income housing or celebrity clients, is able to adjust policies to cover the fluid changes of risk within the security company.
AP Intego
AP Intego is an internet insurance broker that works with main street companies all around the United States. They work with major carriers like Travelers and AmTrust to give the best commercial plans for small companies. AP Intego compares prices for you using a single web application, saving you time and trouble.
The convenience of purchasing for insurance and the opportunity to quickly design plans for additional security guards, administrators, and cars will appeal to an expanding security guard firm. Because AP Intego is not tied to a single insurance carrier, it can identify the optimal option for customers, even if that means working with many carriers.
What is the Process of Security Guard Insurance?
Security guard insurance protects a security business against a variety of possible risks that come with safeguarding persons and property. The role of a security guard is to keep the premises safe from theft, vandalism, fire, and other criminal activity. Neighborhood patrol, static posts, and key person (personal bodyguard) assignments are all options for security guard businesses.
Clients have high expectations of security businesses, and when anything goes wrong, it often results in major property damage or injury to bystanders or security officers. These losses are covered by liability and workers’ compensation insurance. This is not the same as security businesses that just install security systems.
Who is covered by security guard insurance?
Clients and staff, as well as their own commercial interests, are all protected by security firms. Security and safety is a complex balancing act of avoiding client loss while ensuring the safety of their employees. Those attempting illicit acts may target a security personnel on duty. As a result, security officers are often in danger.
The following are some of the security company’s top considerations when it comes to insurance:
- Clients’ Interests: Protected parties have the right to sue for failure to perform or damages for security guard activities that cause property damage or physical harm.
- Security guard health and safety: Confrontations with bad people put guards at danger of bodily and emotional harm. Gunshot wounds, knife wounds, and post-traumatic stress disorder symptoms are all possible severe injuries.
- Firm Solvency: Claims against a security company might cost millions of dollars, as can the expense of defending such claims. Security businesses must safeguard their interests by purchasing adequate insurance to cover all eventualities.
Security firms are in the business of keeping people safe. Insurance providers who specialize in security guard insurance safeguard security firms. If there are any two businesses that are linked, it is the security and insurance industries, which work together to reduce loss and safeguard against claims.
Security Guard Insurance Types
To defend against various sorts of risk, a security guard firm need a variety of policies. The kind of protection provided, the overall risk of the organization, and the number of workers and customers the company services will all influence coverage alternatives. Any event involving a security firm may result in many insurance claims.
Security Guard General Liability Insurance
Accidents and injuries to customers or the general public are covered by security guard general liability insurance. This is referred to as slip and fall coverage in most businesses. This does not cover the security guard; instead, it protects bystanders or those who have direct contact with him against harm or property damage.
This is less obvious with a security guard firm that doesn’t have a physical site and is always on the go, but the danger still exists. For example, a security officer responding to a crisis swiftly around a corner may rush into an innocent bystander, knocking them down and hurting them.
Security Guard Professional Liability Insurance
Security guard general liability insurance includes several professional liability coverage (errors and omissions). These encompass accusations that the guard did not perform job tasks properly, resulting in harm or death. When a security guard firm and its employees fail to follow procedure, this is a common example. Claims for millions of dollars in damages and legal fees may easily ruin a small corporation.
While many things may go wrong, the worst-case scenario for any security officer or security firm is the death of an innocent person by accident. When reacting to a home alarm, for example, a security guard does not follow procedure. As a consequence, he shoots and kills an unarmed owner’s visitor who has forgotten the alarm code.
Security Guard Insurance for Workers’ Compensation
The people who work for the company are covered by workers’ compensation for security guards. Workers’ compensation covers for medical expenses if an employee is injured on the job. Injuries may occur as a result of work tasks or as a result of being on the job, such as breaking a finger by shutting the vehicle trunk on it by mistake.
Employees who work in call centers or in administrative positions are paid differently from those who work in hazardous environments. An office worker is unlikely to be shot, attacked with an item, or otherwise injured in a dispute. Accidental discharge injuries are also a problem for security officers equipped with pistols and Tasers. Even if a celebrity bodyguard is self-employed, he should have his own workers’ compensation coverage.
Vehicles used by security companies need commercial auto insurance.
Vehicles used by security companies need commercial auto insurance. covers both the liability incurred if a company car causes an accident and the damage to the car itself. It also repairs or replaces the vehicle if lost, damaged, or stolen. Items in the vehicle are covered by business property and not the commercial vehicle insurance.
Vehicles are employed by several security agencies to patrol or carry individuals or assets. Many cars have branded wraps, sirens, lights, and safety measures installed. Bulletproof glass, backseat barriers, and integrated computer systems for monitoring are all possible safety measures. These add-ons raise the cost of insuring security cars.
Insurance for Security Companies’ Cyber Liability
Companies that have a data breach in their IT systems might purchase cyber liability insurance to give financial protection and data restoration. Cyber hacking and data breaches may affect any small company, even security guard firms. This coverage covers financial losses incurred as a result of the breach, as well as client notice and monitoring, and data and website restoration.
Client information like as billing details, house addresses, security codes, and bank information is frequently stored in a database by a security guard firm. If information falls into the wrong hands, it might result in significant financial losses for customers as well as responsibility for the security guard firm. This danger is covered by cyber liability insurance.
Security companies need commercial property insurance.
The property of a security firm includes office equipment, furniture, computers, monitoring equipment, and any other objects held by the company. If a fire destroys the whole office monitoring system, the firm will be unable to resume operations until the equipment are replaced. This is covered by commercial property insurance.
The security firm covers the deductible but may swiftly replace the equipment. If the building is covered, there is also loss of use coverage, which allows the company to get a temporary location without incurring any additional costs. An endorsement known as Care, Custody, and Control Coverage protects client property kept by the security firm.
Business property is required to operate a security firm. Company property insurance may be purchased alone or in conjunction with general liability insurance under a business owner’s policy. Property insurance for businesses protects against goods being lost, stolen, or destroyed. Theft, vandalism, fire, and water damage are all possibilities for claims.
Security Guard Company Surety Bonds
When a security guard firm applies for a license, most states require it to secure a surety bond. Surety bonds cover a certain amount in a claim and are paid to the claimant by the insurance company; bondholders are responsible for repaying the insurance company. The amount of the bond varies by state, and it is subject to credit checks. In New York, for example, a $10,000 surety bond costs between $100 and $1,000, depending on credit.
Other Security Guard Insurance Policies to Consider
When assessing insurance coverage, security guard firms and monitoring services should keep two things in mind: sensitive data storage and personnel turnover. The firm is vulnerable to cyber assaults, which might result in hundreds, if not millions, of dollars in losses. Discriminatory employment practices lawsuits are more likely to be filed when there is a high turnover of employees.
Some other Security Guard Insurance Types include:
- Cyber Liability Security Guard Insurance: Protects the security firm in the event that databases are hacked and personal or private data is leaked into the public domain or improperly misused.
- Commercial Umbrella Insurance for Security Companies: Provides additional liability protection for all liability policies in effect if damages exceed the policy limits.
- Employment Practices Liability Insurance: This insurance protects the security guard firm from discriminatory employment practices claims.
Every security guard and monitoring firm should assess the risks and seek insurance that effectively covers the hazards that are most relevant to their business.
Costs of Security Guard Insurance
Because of the inherent hazards in the job, security guard insurance is costly. While many current corporate standards are based on documented guard hours and wages, corporations are also judged by the sorts of contracts they get. For most security guard organizations, general liability insurance begins at roughly $2,500.
Security guard insurance plans are typically purchased with a 25% down payment and financed over ten months for the policy year. Payment alternatives offered by various carriers may vary.
Typical Costs of Security Guard Insurance
Security guard insurance assesses the company’s contract risk. While having an armed or unarmed guard is crucial when assessing risk and corporate requirements, the areas monitored are more important.
Security guard contracts are assessed in two ways for insurance purposes:
- Low-Risk Contracts: A roaming patrol (armed or unarmed) that isn’t always in touch with the public. Security firms for parking lots, building sites, and industrial locations are included. Guards do not have the power to make arrests.
- Interacting with the public, typically in situations when crowd control, drinking, and targeted assaults are possible. Security for executives and celebrities, events, concerts, and clubs are all part of the package. Contracts in which guards have arrest power are also included.
New Security Firms Need Insurance
The contract types, as well as the firm owner’s expertise and shown professionalism, will be used to assess new businesses. When it comes to obtaining insurance for security companies, business planning and basic business etiquette go a long way.
Consider the expenses of even little liability or workers’ compensation claims. While security guard insurance may seem to be expensive, consider the costs of even minor liability or workers’ compensation claims. Working in the security profession necessitates risk mitigation, and your insurance policies are your greatest friend in ensuring that you are appropriately protected financially.
Bars, Nightclubs, & High Risk Security Guard Insurance
Bars and nightclubs pose a danger because to the large number of individuals present, the presence of alcohol, and a range of other inebriated behaviors. As a consequence, minimum premiums have increased significantly. If you keep security contracts with these sorts of venues, expect to spend at least $20,000 in yearly premiums.
To avoid public disruption and injuries caused by inebriated, aggressive conduct, security personnel may need further training. Terrorist and shooter attacks are more common at nightclubs, making these contracts riskier than others.
“Armed and unarmed security guard services are charged at different prices in the security guard industry. The price for the armed is clearly greater. When it comes to personal bodyguards, the market is considerably more restricted, and there will be more questions. Underwriters will want to know who the person being guarded is, their celebrity status, their travel itinerary and destinations, and other details. Bodyguard insurance is often pricey, and it is available in markets such as Lloyds. These risks aren’t covered by a standard security guard underwriting market. A year-round exposure would be more appealing to underwriters than a single event.”
— Andy R. Gastley, A.G. Roth President
How to Purchase Security Guard Insurance
It might take some effort to figure out what your security guard business requires and how to match it with the appropriate insurance plans. You must not only compare carriers and prices, but you must also comprehend the policies that you must have as a security firm. Bringing thorough and correct information about your security company to an insurance agent or broker will allow you to assess your best coverage alternatives as fast as possible.
When purchasing security guard insurance, there are a few methods to save time and money:
Prepare data for security guard insurance by preparing payroll data.
The security guard insurance application asks for specific details like how many guards you have, whether they’re armed or not, and how many hours they work on average. You’ll be asked what kinds of places are guarded, ranging from airport contracts to low-income neighborhoods. Payroll data is used to calculate total liability and workers’ compensation risk.
Obtain the previous Security Guard Insurance Policy’s Loss Run History
If you’ve been in business and have security guard insurance, the new company will want to check your loss history for the previous three years. This is collected from your current carrier, and the new carrier examines your company’s full loss history throughout its tenure with the prior carrier. This informs a new carrier about your company’s risk.
Provide a copy of all client contracts in writing.
Security businesses must explicitly outline their tasks and responsibilities in order to be covered by a security guard insurance policy. A contract between a corporation and a customer must specify the services to be provided, the fees, and the contract’s exclusions. Before completing quotations, insurance companies will ask for this information.
Insurance for Security Guards Most Commonly Asked Questions (FAQs)
You may still have some queries regarding your unique company requirements since security guard insurance is so complicated. We like assisting small company owners in identifying the best solutions for their specific requirements.
Is Security Guard Insurance Available for Low-Income Housing?
Security guard insurance coverage for businesses that serve low-income and subsidized housing areas are not available from every insurance provider. Because these are greater-crime regions, the danger is higher. Companies that do cover this sort of risk will charge the security firm greater rates.
Is Guard Dog Insurance Included in Security Company Insurance?
Guard dogs and smelling dogs are becoming more popular. Security dogs are considered personal property, thus injuries sustained on the job are not covered by workers’ compensation. To cover accidents to animals at work, security guard agencies can acquire pet “work dog” insurance from a company like Trupanion.
Is it necessary for armed security guards to have their own insurance?
If a security guard uses equipment that isn’t supplied by the security business or employer, he should get a floater coverage that covers his usage while on the job. During employment, the employer’s insurance covers the responsibility of usage, but if the weapon is lost, the floater policy covers it. For business owners, several carriers provide optional riders.
Is a Security Firm Responsible for Injuries Sustained During a Citizen’s Arrest?
For injuries sustained during a citizen’s or wrongful arrest, a security business and its personnel are accountable. Because many general liability insurance do not cover this kind of responsibility, security organizations must have a system in place to avoid the risk of financial or legal repercussions as a result of a citizen’s or false arrest. Consult your service provider.
Conclusion
Insurance for security companies involves safeguarding your customers, employees, and hard work. Insurance covers injuries, property damage, and financial loss, ensuring the security guard company’s financial stability. The cost of basic coverage for a business begins at roughly $6,000 per year, but it may rise depending on the size of the organization and the risks it faces.
“insurance for armed security guards” is the process of providing financial protection to individuals who are employed as security guards. The purpose of such insurance is to ensure that a person will be able to pay for medical and funeral costs if they were injured on the job, or lost their life while working.
Related Tags
- security insurance meaning
- insurance requirements for armed security guard
- health insurance for security guards
- self-employed security guard insurance
- insurance and security needs in business plan
