Working as a security guard or in the security business is an occupation that is inherently riskier than many other occupations. Security guards are responsible for protecting someone’s property, and in some cases, they put their lives on the line to serve as bodyguards. People in the security guard business must be prepared to handle dangerous situations while on the job. Anyone who works as a security guard or who operates a security company needs to have a liability insurance policy tailored to their security business. Such a liability policy can protect security personnel and the company if they are financially responsible for a significant loss.
What Does Security Guard Liability Insurance Cover?
In 2020, the Bureau of Labor Statistics reported that the number of people working as contract security personnel is increasing. Likewise, the Bureau reported that the number of individuals independently providing security services to their communities is increasing. An increasing number of security guards are performing their duties while they are armed. Given the overall growth in the security business and risks associated with armed security personnel, it is more important than ever that those working in the industry have appropriate security guard liability insurance.
Basic general liability insurance coverage is required in most states as a condition to getting a business license. State laws require that those seeking a business license to operate a security business satisfy the minimum coverage requirements established by applicable state law.
In the security business, security guard liability insurance protects you and your security company against a range of financial losses that arise out of your security business operations and for which you or your company are legally responsible. These losses may result from claims or lawsuits based on bodily injury, property damage, and personal injuries such as libel and slander. General liability coverage also covers the cost of defending you against those claims in court.
General liability coverage can be structured to insure your security guard business against the unique risks involved in your business operations. General liability insurance covers the cost of third-party liability claims and claims related to personal injury and property damage. For example, suppose one of the company’s clients or vendors suffers an injury while visiting the company’s property and files a lawsuit against your company. In that case, the general liability insurance will cover the associated legal expenses and any amounts the company may have to pay in damages.
In general terms, the average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for a small security business can range from $87 to $129 per month. The cost will depend on the location of the business and area of operation, size of the company, payroll, sales and amount of experience in the security business.
General liability coverage is the minimum insurance any commercial company should have. However, general liability insurance may leave a security guard business without coverage in certain situations involving the company’s professional judgment.
Working as a security guard exposes those individuals to some level of professional liability. Security guards are frequently called upon to exercise judgment on the spot in difficult or emergency situations. Without professional liability insurance coverage, a mistake in judgment could be financially devastating.
Any claims based on a professional failure of the security guard or the security company are not usually covered by general liability insurance. Examples of those situations can include:
- Claims for false arrest by security personnel in situations where the claimant did not suffer bodily injury in the hands of the security personnel.
- Claims asserted by a client of the security guard based on a failure to apprehend a trespasser or aggressor.
These occurrences would likely give rise to a claim against the security personnel based on their failure to fulfill a professional obligation to do the security work properly. The security company would only be insured against these claims through professional liability insurance.
Professional liability insurance is also important if a security company offers security consulting advice. Such a policy would protect the business from claims based on bad advice given to its customers.
Professional liability insurance is therefore appropriate for companies that offer security services and security advice. It covers all or some of the costs of:
- Defense against negligence claims
- Damages in a civil suit
- Claims related to misrepresentation, inaccurate advice, breach of duty, and violation of good faith
Other Insurance For Security Guard Professionals
Many factors that are unique to a particular security guard business will determine the type and amount of coverage the business needs. Some other types of security guard insurance coverage that a security guard or security company should consider include:
- Commercial automobile
- Workers’ compensation
Speak With SSI About Security Guard Liability Insurance
Whether you are moonlighting as a security guard or managing a security guard company with an established business, make sure that you have the coverage you need. Contact the security guard liability insurance experts at Southern States Insurance for more information about a policy that suits your needs at competitive rates. You may call SSI at 888.971.6304 or by request a quote online to start protecting your security guard company against liability today.