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 guard 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.
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.**