Whether you are starting a security guard business or already established in the security guard business, you need to make sure your security guard insurance coverage protects you against the risks you and your personnel are likely to face.
Providing security services is more dangerous than many other occupations. Having the right security guard insurance coverage that protects your business from a catastrophic financial loss is a wise investment.
Types of Insurance a Security Guard Company Typically Needs
The type of insurance policies and appropriate coverage limits important for a security guard company depends on the nature and size of the security guard business itself.
Security guard insurance policies are customized to fit the specific business needs of the company or the needs of an individual who is providing security guard services in the case of a sole proprietorship. The ability to customize the insurance means that a security guard business does not pay for insurance that it does not need.
Below is an overview of the type of insurance most security guard companies need:
General liability is the most basic insurance coverage that anyone doing business in any industry needs. Proof of general liability coverage is required by many states’ laws as a condition to getting a business license. Even if your state does not require general liability insurance, your potential clients may nonetheless require it.
If your business owns real estate or other valuable assets, general liability insurance is an excellent way to protect those assets. General liability coverage is a comprehensive type of insurance policy business. General liability insurance is a type of commercial insurance that protects the business from financial losses arising out of claims based on bodily injury and property damage. It covers risks such as:
- Personal injury to visitors that occur on the company’s premises, along with associated medical payments.
- Personal property damage or real property damage.
- Legal defense and judgment.
- Other personal injuries such as libel, slander, invasion of property and privacy, false arrest.
- Advertising injury caused by advertising your business or by violating another company’s copyright.
General liability insurance will cover damage to people and property that a security guard causes while pursuing a suspect, searching a suspect, or incorrectly detaining a suspect.
The cost of premiums for a general liability policy depends on factors such as company size, location, nature of the risks your company faces, coverage limits, and the amount of deductible you agree to.
Workers’ Compensation Insurance
State laws will require your security guard company to have workers’ compensation insurance if the company has the requisite number of employees under state laws. Workers’ comp insurance helps compensate your employees for lost pay and medical expenses if they are injured while on the job.
Most security guards and security guard companies need at least one vehicle to do their work. An individual’s automobile insurance will not cover accidents and injuries that occur while performing their jobs. Commercial auto coverage is also required by state laws.
Commercial automobile insurance covers your own vehicles and other vehicles and you in the event of an accident, and it covers your employees and other drivers involved in the accident. It also covers any property damage due to the accident, such as one of your security guards hitting a fencepost while on patrol in a private community.
Professional Liability Insurance
Professional liability insurance covers you and your business if a client files a claim based on your company’s negligence or mistake in the exercise of professional judgment.
It can protect you if you are liable for damage or injury resulting from errors in judgment and in situations that spin out of control, such as when one of your security guards erroneously apprehends the wrong person and fails to apprehend the actual trespasser or aggressor.
It can also protect your if your company fails to inform a client of an impending threat and the client is injured or suffers property damage as a result.
Commercial Umbrella Insurance
If your security guard company has experienced growth or if your company provides particularly dangerous security services, you may want to consider an umbrella insurance policy. Umbrella coverage provides coverage above and beyond the standard limits of your other business insurance policies.
If your company is faced with a lawsuit seeking significant damages, the coverage limits of the basic insurance policies may not cover all of the costs. An umbrella policy will kick in and help you cover the excess losses. Be sure to discuss this with a security guard insurance specialist familiar with the kinds of risks your company may face.
For More Information about Security Guard Insurance for Your Company, Contact the Experts at Southern States Insurance
Companies in the security guard business are not one-size-fits-all. Consult with the insurance experts at Southern States Insurance for more information about the insurance policies available for your security guard company and get a free quote.