Insurance for security guards and companies
Any business that offers safety or security services should be protected against claims of negligence, errors or third-party injury.
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What is security company insurance?
Security company insurance is a policy designed for security guards and protection companies to provide coverage against allegations of negligence or claims of financial loss through errors & omissions coverage or third-party bodily injury.
Any security-related professional who offers protection, safety services or guidance for a fee should be covered with a custom security liability insurance.
Your security business can be held liable for any advice or work was done that results in any form of damage.
Here are some common businesses we cover in the security and protection industry:
- Security companies
- Security guards
- Private investigators
- Bouncer services
What does it cover?
A comprehensive security company insurance package should contain the following policies:
- Commercial General Liability (CGL) Insurance: CGL insurance is vital for any security business that has clients visiting your office or under your protective supervision. Also known as slip-and-fall insurance, it covers you from third-party bodily injuries or property damage as a result of your actions. For instance, they trip, fall, are hurt and require medical attention. If they sue you for damages, the cost of a lawsuit could put you out of business. CGL provides you with coverage to defend yourself in court, and it pays for the injured person’s medical expenses.
- Professional Liability Insurance: Also known as errors and omissions (E&O) insurance, professional liability provides financial coverage against financial losses due to negligence, errors, or failure to deliver a service as promised. Essentially, it protects against costs associated with claims or lawsuits that may threaten the survival of your business if your company is sued by one of your clients.
- Cyber Liability Insurance: It is your legal responsibility to protect your customers’ personal information and their financial data. If your computer server or systems are compromised or if an accidental data breach occurs, you could be sued for damages by your customers. A cyber liability policy covers the cost to repair your computing systems if you are hacked, any losses you suffer because of a computing systems outage, legal advice, notifying your customers of a cyber-attack or data breach, and providing them with credit monitoring.
- Legal Expense Insurance: Legal expense coverage provides access to legal advice on a set of common business topics with an experienced lawyer as well as the cost to retain a lawyer if you are subject to a lawsuit.
- Commercial Property Insurance: This type of coverage is known by many names, including commercial building insurance, commercial rental insurance, or business property insurance. Whatever you call it, commercial property insurance provides you with financial coverage for the loss of or damages to a commercial property that you own resulting from an unexpected event such as a fire, theft, or vandalism. The coverage typically includes protection for your company’s physical contents like your computers and security equipment.
How much does it cost?
The cost of a basic or standard insurance policy for security companies and security guards is determined by several factors, such as:
- The industry you’re in and the security services you provide
- Your business’s size and location
- Your clients’ locations
- How many employees do you have
- Years of experience
- Your annual and projected revenues
- Your history of insurance claims
Most security service firms and professionals purchase a policy with up to $2 million of general liability coverage.
To gain a better understanding of the risks you face, have a chat with one of our licensed brokers and discover how a customized insurance policy can help protect you
Common claims scenarios
Problem: One of your bouncers working at a nightclub oversteps their authority and injures a customer they are trying to eject from the premises. The customer sues you for third-party bodily injuries.
Outcome: Your commercial general liability coverage may pay for your customer’s medical expenses as well as your legal defence costs and the outcome of the lawsuit.
Problem: A security guard at a retirement complex falls asleep during the night shift, and a burglar robs a resident. The resident and retirement complex company sues your security firm for failing to deliver a service as promised.
Outcome: Your professional liability coverage may pay your legal defence fees including retaining a lawyer to represent you in court, as well as the outcome of the lawsuit.
Problem: An employee at your executive protection company inadvertently leaks confidential information online on one of your high-profile clients, putting them at risk. The client sues your company for damages.
Outcome: Your cyber liability coverage may cover the costs associated with obtaining legal advice to defend yourself in court and monitoring credit and identity theft for your client.
Frequently asked questions
Security guards are responsible for protecting their customers’ properties from the risk of vandalism, burglary, and theft, or keeping people safe from harm. The nature of their jobs can put them in dangerous situations. At a minimum, security guards need commercial general liability and professional liability insurance.
Yes. Professional liability, or errors and omissions (E&O) insurance, is a must-have for security service firms. Regardless of how meticulous and cautious your security team is executing their duties, mistakes or accidents can happen at any time to anyone.
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