As anyone in the security guard business knows, having the right insurance is critical to the company’s financial security. Cutting corners to try to save money on insurance for your security guard business is likely to cost you more in the long run.
5 Questions To Ask A Security Guard Insurance Company
The best way to save money on insurance is to work with an insurance broker with experience working with security guard businesses. An experienced insurance broker will help you design a security guard insurance policy customized for your business.
Below are important questions to ask your insurance broker to help you make the right choices when it comes to insuring your security guard business:
1. What Kind Of Insurance Do I Need?
The most common and the most comprehensive type of policy that a security guard business should have is general liability insurance. General liability insurance is required in many states as a condition to being licensed to do business in the state.
Those state laws may also mandate the minimum amounts of general liability coverage your business needs. Even if you are operating a security guard business in a state that does not legally require you to have general liability insurance, it is very risky to operate without it.
If you or your employees are involved in an incident and your business is sued, you could find yourself facing expenses totaling in the six-figures or even more. With an adequate general liability policy, your insurance will cover many of those expenses, which could save your business from bankruptcy.
You may need additional coverage as described in more detail below.
2. What Risks Does General Liability Insurance Cover?
Among the risks covered by general liability coverage include:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
The types of accidents it will cover in providing security services can include damage to public or private property done while in pursuit of a suspect, or damages arising out of an arrest or detention of an innocent person.
3. How Much Will My Insurance Premiums Cost?
An average-sized security guard business spends between $500 and $1100 per year (or between $42 and $100 per month) for $1 million of general liability coverage. The price you will pay for your policy depends on a number of factors such as:
- Location of your business and nature of your operation
- Deductible amounts
- Number of employees
- Per-occurrence limits
- General aggregate limit
You may find it somewhat cheaper to buy general liability insurance by purchasing it as part of a more comprehensive business owner’s policy. A business owner’s policy covers other risks such as business interruption and may provide a more comprehensive solution for your business.
4. What Other Types Of Insurance Does My Security Guard Company Need?
Your security guard business may need additional coverage beyond a basic general liability policy. Additional coverage may be needed for risks based on one or more of the following:
Professional liability coverage protects you, your employees, and your business in cases where one of your guards was negligent in performing security service duties, or inaccurate advice was given, or in some cases when a situation was misrepresented.
Some general liability policies for security guards include some professional liability coverage. Still, you should make sure you understand the extent of the coverage and, if appropriate for your business, buy additional coverage.
You will need commercial auto insurance if your security guards use any motorized vehicle to patrol an area or as part of the security services provided.
Whether your guards use patrol cars, golf carts, boats, or trucks, you need this insurance to cover damage to the vehicle, third-party drivers,, and to provide collision protection and uninsured motorist protection.
If you have employees, state laws will require you to carry workers’ compensation to cover the expenses of injuries they may sustain while on the job. Your insurance broker should be aware of applicable state law requirements.
This insurance can help cover the costs of damage to property that your company is protecting but could not prevent.
5. What Is The Average Total Cost Of Insurance For A Startup Security Guard Business?
In general terms, the average premium cost for a startup security guard business ranges between $2,500 and $4,000 per year (or between $200 and $350 per month).
Your actual premium costs will depend on such factors as the type of security services your company will provide, the experience levels of the business owners and security personnel in the law enforcement/military/security guard business, the amount of estimated annual guard hours and payroll, and whether the security personnel will be armed or unarmed while providing security services.
Contact Our Security Guard Insurance Experts For More Information
With the help of our insurance experts at Southern States Insurance, you can make informed decisions about the insurance your security guard business needs. We can help you protect your business whether you are moonlighting as a guard or running a small business with several employees. Contact our security guard insurance specialists to make sure you get the best deal for the most complete coverage.