Insurance for a security company in Canada, often referred to as security company insurance, is a specialized area of commercial insurance given the unique products and services a security company offers and the unique business liabilities that come along with it. Thankfully, the experienced commercial insurance brokers at ALIGNED Insurance have the right expertise to secure the best insurance for a security company in Canada and help answer tough questions like how much is insurance for a security company in Canada?
What is Security Guard Insurance?
Security guard insurance is an insurance policy designed for people that work in the security industry. It includes bouncers, private security guards, security guards in malls, security monitoring firms, individuals working in business security, and more.
Security guard insurance is designed to include various insurance products that provide coverage and protection for those working in the security industry against liability claims, losses, property damage, bodily injuries, litigations, and more to other security guards or third-party bystanders.
Whether you are an armed or unarmed security guard employed by an individual or working for a company, security guard insurance will ensure you are protected from risks and liability.
How Security Guard Insurance Works
Any company or independent contractor that offers security guard services should have a proper insurance coverage policy. The exact amount of your coverage limit depends on the type of policy you choose. Some factors to consider include:
- Industry and the type of work you do
- The risks you are exposed to
- Your claims history
- Before purchasing security guard insurance, you should always do your research and compare quotes to find the most suitable package.
Factors Influencing the Security Guard Company Insurance Cost
The cost of insurance for security companies varies depending on several factors, such as the size of the company, the number of employees, the nature of operations, the types of properties they safeguard, and more. To get an accurate quote, security companies should consult with insurance providers specializing in their industry.
In conclusion, insurance plays a pivotal role in ensuring the smooth operation and risk management of security companies in Canada. By understanding the different types of insurances available and their inclusions, these companies can make informed decisions and safeguard their business interests.
Understanding Insurance for Security Companies in Canada
Security companies in Canada, like any other business, need protection against unforeseen events and liabilities. To ensure the safety and financial stability of their operations, these companies invest in various insurance products tailored to their unique needs. Among these insurances, security guard insurance stands out due to its importance in covering potential risks associated with security operations.
What Does Security Guard Insurance Typically Include?
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General Liability Coverage: Most general liability policies for security companies cover claims of bodily injury and property damage incurred by third parties, such as clients or bystanders. This is fundamental for any security company to protect against claims resulting from accidents or incidents during their operations.
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Property Insurance: This ensures that damages or losses to properties under a security company’s watch are covered. If a security company fails to secure a site, leading to property damage or theft, this insurance provides compensation.
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Commercial General Liability (CGL) Insurance: Often referred to as a CGL policy, this insurance goes a step further by covering the costs arising from third-party liability claims. This includes medical expenses resulting from injuries or property damages incurred by clients or bystanders due to the services of the security company.
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Errors & Omissions (E&O) Insurance: Also known as professional liability insurance, E&O covers third-party claims resulting from errors or negligence during the provision of security services. For instance, if a client alleges injury due to a security company’s failure to adhere to standard protocols, E&O insurance covers the legal defense costs, settlements, and more.
What Makes Insurance For A Security Company In Canada Unique?
Security companies in Canada serve a pivotal role in safeguarding businesses, properties, and individuals. Given the high-risk nature of their services, these companies require a specialized insurance plan tailored to their unique needs. A standard commercial general liability policy, suitable for an average retailer or business owner, falls short for a security company.
Why Standard Commercial General Liability Policies Fall Short for Security Companies?
The standard commercial general liability policy, which most retailers or business owners hold, is insufficient for a security company. This is due to numerous exclusions in such policies, which can be detrimental to the security sector. Moreover, these standard policies often overlook professional liability, which is indispensable for security companies.
Key Coverage Considerations for Security Companies:
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Care, Custody, and Control Exclusion: Traditional policies may exclude coverage for damages to property under a company’s care, custody, or control. For security companies, this is a significant gap. Their policy should ensure that this exclusion doesn’t apply to the property they’re entrusted to protect.
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Broadened Personal Injury Extension: Given the nature of their work, security personnel may face claims of false arrests, invasion of privacy, or discrimination. Therefore, their insurance should have an expanded personal injury extension to cover such claims.
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Absence of Failure to Perform Exclusion: Security companies should ensure their policy does not have a “failure to perform” exclusion. This is vital because if, for any reason, the company fails to deliver on its promised services, it could face substantial claims.
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Intentional Injury Coverage: During their duty, security personnel might need to use force to protect property or persons. Any intentional harm caused in these situations should not be excluded from the coverage.
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Coverage for Damages to Protected Property: Security companies bear the responsibility for properties under their watch. Thus, their insurance policy must cover any loss or damage to such properties, ensuring this isn’t excluded.
What Types of Specialized Insurance Products Are Available For Security Companies?
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Insurance for alarm monitoring operations and call centres
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Insurance for investigate services
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Insurance for security guards including stationary, mobile and emergency response
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Insurance for armoured car companies
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Insurance for security product manufacturers
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Insurance for security system installers and/or access control professionals
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Insurance for security training facilities
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Insurance for sprinkler design and installation companies
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Insurance for event security, doormen & bouncers
So…How Much Is Insurance For A Security Company In Canada?
This broad definition of a security company makes pinpointing a singular insurance cost somewhat challenging. In Canada, while there isn’t a one-size-fits-all answer to how much insurance for a security company might cost, two significant determinants come into play: the annual revenue of the company and the specific type of security services they provide.
For instance, a company specializing in cybersecurity solutions might have different insurance needs and costs compared to one that offers on-ground patrolling services. Similarly, a firm with a larger annual turnover might find itself facing higher insurance premiums due to the perceived increased risk and the expansive scale of their operations.
Additionally, other factors such as the number of employees, the equipment used, and the regions of operation can further influence the pricing. Therefore, while there’s no straightforward answer, understanding these variables and consulting with specialized insurance providers will give security companies in Canada a clearer picture of potential insurance costs.
Find the Right Insurance For A Security Company In Canada from ALIGNED
For those wondering, “What insurance does a security company need?” the best approach is to consult with insurance experts who specialize in this industry. ALIGNED Insurance works with Canada’s top insurance companies to deliver tailor-made insurance packages that meet the specific needs of security companies. With our deep industry knowledge and partnerships, we can offer affordable prices tailored to your company’s unique requirements and risks. Click Here To Get A Quote or contact one of our business insurance experts for more information or to address any questions you may have
