Archive for the ‘Security Company Insurance’ Category

3 Reasons Your Security Company Insurance Should Include Professional Liability

Wednesday, May 11th, 2011

May 11, 2011
Published by Jon 		++

Security company insurance policies that include Professional Liability or Errors and Omissions coverage are like Doctors and Lawyers policies that include Mal-Practice insurance. For Security Guards, Professional Liability offers protection for claims made against you for acting or not acting, when those actions or inactions result in someone else being hurt or injured. Let's look at a few examples where it would be beneficial to add Professional Liability to a security company insurance policy.

False Arrest

For example, if a security guard wrongfully detains someone and that person has not been injured (so there has been no "Bodily Injury"), a standard General Liability insurance policy would not offer any coverage. The only way to cover any claims arising out of wrongful detention or false arrest is to include a Professional Liability policy with your security company insurance.

Damage To Client's Property

Another example of needing to add Professional Liability coverage to your security company insurance would be if a security guard allowed a truck into a warehouse, and thieves were in the truck. Let us assume that the security guard did everything they were supposed to do, check the driver's license and the access list. However, they did not detect the thieves. Any damage the thieves cause would need to be covered by the Professional Liability policy, as the guard himself did not actually cause any damage.

Assault and Battery

Finally, let’s imagine that a security guard company has a foot patrol schedule and they are late on their rounds, and someone is attacked or assaulted. The victim can sue the guard company and allege that "IF ONLY" the security guard was on his normal schedule, the attack would never have happened. This again would not be covered by General Liability, but it would be covered by the Professional Liability on your security company insurance policy.

General Liability policies can have exclusions that do not cover the actual work that a security guard does. So, Professional Liability is the best way to make sure there are no coverage gaps in your security company insurance policy.

We believe we our the best insurance agency to meet your needs for security guard insurance coverage. Contact us or fill out a free quote and we can begin the relationship or answer any questions you may have.

**For more information about Security Company Insurance contact me at JHall@SouthernStatesInsurance.com or call me at (678) 715-9634. **Our Workers Compensation and General Liability programs are designed for firms with more than $100,000 in annual payroll. Our General Liability programs Include a $1 million limit and start at $5,000 in annual premium in most states.**

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Why Some Security Company Insurance Quotes Are So Much Cheaper Than Others

Wednesday, May 11th, 2011

May 11, 2011
Published by Jon 		++

Many security company insurance carriers offer quotes with standard policy forms for businesses with no regard for what coverages a security company actually needs. Yet, there is a big discrepancy between carriers who specialize in writing security company insurance and everyone else.

Is Something Missing?

Typically, if you receive a quote from one agent or company and that quote is half the price of another quote, the cheaper quote is probably missing important features like Professional Liability and many other coverages crucial to include in a security company insurance policy. (Why is professional liability so important for security guard companies?) Let’s take a closer look at a couple of additional security company insurance coverages that are worth considering.

Lost Key Coverage

Take lost key coverage for example. A security company may have access to a master key for an entire building that has hundreds of doors. If that key is lost, missing, or stolen, it could cost thousands of dollars to rekey all the doors. This exposure is one that is typically not covered by the standard general liability section of a security company insurance policy. Making sure you have the right coverage, even if it costs a little more, is critical in the event of a large claim.

Medical Malpractice (Not Just For Doctors Anymore)

Incidental medical malpractice is another example of coverage that is normally excluded by the regular general liability section of a security company insurance policy. If a security guard breaks up an attack, and renders first aid to a victim, they may be protected from criminal charges by Good Samaritan laws, but the security guard company may be obligated to pay civil damages to the person they tried to help if their aid actually caused further injury.

Conclusion

Having a comprehensive security company insurance program in place is critically important to ensuring all aspects of your business are covered. With the right coverage in place, you can also make sure that your customer’s needs are met in the event of a complicated claim.

**For more information about Security Company Insurance contact me at JHall@SouthernStatesInsurance.com or call me at (678) 715-9634. **Our Workers Compensation and General Liability programs are designed for firms with more than $100,000 in annual payroll. Our General Liability programs Include a $1 million limit and start at $5,000 in annual premium in most states.**

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If I Hire Off Duty Police Officers, Will Their Insurance Cover My Security Guard Company?

Wednesday, May 11th, 2011

May 11, 2011
Published by Jon 		++

Many police precincts have certain rules about when an off duty police officer acting as your security guard is covered for both general liability and workers compensation insurance. It is important to know exactly what the rules are for each off duty guard that you hire based on that guard's particular precinct's rules.

How Much Coverage Do They Have?

To what extent the security guard is covered is also important. Many police precincts will cover the guard’s actions and injuries while they work for others, but they will not defend the security guard company at all. They will only defend the guard’s specific interest in an event or claim.

Under this scenario, a security guard company relying solely on a police precinct to cover a claim can result in thousands of dollars of legal fees. As well, the precinct may try to deflect the liability or negligence back to the security guard company. The only way to make sure you have coverage is to have your own security company insurance covering you and the guards that you hire.

Example: Defense Costs

For example, if an off duty police officer tries to stop a criminal, or chase down a criminal, and in fact injures the criminal, his precinct may defend him and his actions. However, any good lawyer would not just sue the police officer, but also your security guard company as his employer at the time. So without an adequate security guard insurance policy in place protecting you, your company would be responsible for its own legal fees and any damages awarded that your security company is responsible for.

Conclusion

Defense Costs are a part of an insurance policy, so part of your premium goes toward paying attorneys to defend you in the event of a claim. These costs can be equal to or more than the actual claim settlement. Self insuring these defense costs can cripple your business in the event of a claim. So, don’t leave the responsibility for insuring off duty police officers up to someone else. Protect yourself.

**For more information about Security Company Insurance contact me at JHall@SouthernStatesInsurance.com or call me at (678) 715-9634. **Our Workers Compensation and General Liability programs are designed for firms with more than $100,000 in annual payroll. Our General Liability programs Include a $1 million limit and start at $5,000 in annual premium in most states.**

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Can I Buy Security Guard Insurance That Covers Employees If They Steal From My Clients?

Wednesday, May 11th, 2011

May 11, 2011
Published by Jon 		++

Dishonest employees are an unfortunate part of many security guard companies. But with the correct security guard insurance policy, you can cover your employee’s dishonest acts. The right security guard insurance coverages can give your customers some reassurance that you’ll be able to solve this kind of problem if your employee guards or subcontracted guards steal from them.

What Policies Do I Need?

First, you’ll want to add a “Third Party Endorsement” to your crime policy, since typical Crime insurance policies do not cover your employees stealing from others.

Second, since 1099 subcontractors are not normally covered by these Crime policies, a "Designated Agents as Insured" endorsement is needed to cover their dishonest acts.

With both of these endorsements added to your security guard insurance policy, you can assure your clients that the right insurance is in place to give them peace of mind about having your security guards on their property when no one else is there.

Real Life Example

Let’s imagine a security company owner hires his nephew to work part time, and leaves him on a 1099 instead of putting him on a W2. The nephew steals a few TV's from a customer. This event is NOT covered on a General Liability policy or on a regular Crime policy.

First, in order for there to be coverage for this act on your security guard insurance policy, the security company should have added the nephew as a Designated Agent on their Crime policy. Then, he would be treated like an employee.

Second, in order to protect the customer’s property (the stolen TVs), a Third Party Coverage endorsement should have been added to the security guard insurance Crime policy, since a typical Crime policy only covers the security company’s property, not the customer’s property.

Conclusion

Making sure these endorsements dovetail together to avoid coverage gaps often requires the help on an independent insurance agent. These security guard insurance coverages are not "everyday" coverages, and they must be specifically requested.

Don’t be caught off guard. Make sure your security guard insurance policy has the right endorsements that will pay in the event that your employees steal from your clients.

**For more information about Security Company Insurance contact me at JHall@SouthernStatesInsurance.com or call me at (678) 715-9634. **Our Workers Compensation and General Liability programs are designed for firms with more than $100,000 in annual payroll. Our General Liability programs Include a $1 million limit and start at $5,000 in annual premium in most states.**

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Do All Security Company Insurance Policies Cover Armed Guards?

Wednesday, May 11th, 2011

May 11, 2011
Published by Jon 		++

Armed security company insurance can be tricky. Here’s a few things you should know about insuring armed guards.

Some Carriers Do, Some Don’t

Many insurance carriers have absolute exclusions and "Reinsurance Treaty Violation Penalties" for insuring armed guards, which means they totally prohibit writing security company insurance for them in any way shape or form. Others, however, will write security guard companies that use armed guards. Ask your independent insurance agent if they represent any carriers that write security company insurance that covers armed guards.

Full Disclosure Is Key

It is extremely important to ask your independent insurance agent, in writing, if the security company insurance coverage you’re about to buy contemplates ANY armed security guard work. The last thing you need is a claim denied due to misrepresentation.

If you purchase a security company insurance policy and have not disclosed the use of armed security guards, even if the agent did not specifically ask you about them, and there is a claim involving your guard shooting anyone, the insurance company may deny coverage due to misrepresentation. The insurance carrier can argue that, had they only known you were using armed security guards, they would have never written the policy to begin with.

Even if there is a claim totally unrelated to any shooting or weapon use with one of your security guards, if you employ armed guards anywhere, the security company insurance carrier may try to use that as a misrepresentation tool to deny coverage. It doesn’t sound fair, but it’s reality.

It’s All Or Nothing

There is no policy endorsement you can buy that will change the wording on a typical security company insurance policy to include coverage for the use of armed security guards. You either use them, or you don’t. But, full disclosure to your independent insurance agent and your security company insurance carrier is imperative to prevent unpaid claims involving armed security guards.

Conclusion

If your independent agent represents any security company insurance carriers that write coverage for companies with armed guards, they will place your coverage with them. If they don’t represent any carriers willing to insure armed guards, you need to move on to another independent insurance agent. Southern States Insurance represents several carriers who write security company insurance policies that include coverage for armed guards.

**For more information about Security Company Insurance contact me at JHall@SouthernStatesInsurance.com or call me at (678) 715-9634. **Our Workers Compensation and General Liability programs are designed for firms with more than $100,000 in annual payroll. Our General Liability programs Include a $1 million limit and start at $5,000 in annual premium in most states.**

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