Security Service Insurance

Security Service Insurance

If you offer security services, such as supplying other businesses with security guards, then security service insurance might be important. You might think that security business insurance would be hard to come by, but the reality is that ALIGNED can help businesses of all shapes and sizes, including security companies, find quality commercial insurance coverage.

Security Service Insurance

Security service insurance explained

Security company insurance is specially designed to protect businesses that provide security services, products and/or employ security guards. While the exact coverage will depend on what you choose to include with your security service insurance policy, basic policies can protect your business against property damage, liability claims, bodily injury, theft, and more. For example, if a security guard on your team accidentally injured a person on the job, and they brought a third party bodily injury claim against you, your insurer could help cover the costs. 

Who is security service insurance for?

Security service insurance is designed for a wide range of professionals and/or organizations in the security industry. For example, security guards, bodyguards, security companies, bouncers, and private investigators could all benefit from security service insurance coverage. If you work in a security-related field, contact ALIGNED for more information on our commercial insurance policies.

What does security company insurance cover?

The coverage included with security company insurance policies varies, as two companies are the same. That said, many security businesses chose to include the following five coverages in their policies:  

  • Professional liability coverage: Professional liability insurance, also known as errors and omissions insurance, can cover the cost of a lawsuit alleging error, misconduct, negligence, or failure to deliver a service as promised. This coverage would come in handy if, for example, a security guard employed by your company accidentally “fell asleep” on the job, which allowed a thief to break into the premises. 
  • Cyber liability insurance: Cyber liability coverage is designed to safeguard companies against cyber attacks, hacks, data breaches, etc. So if someone hacked into your online system and stole sensitive information (e.g. video footage or financial information), having this type of coverage might help. With cyber liability insurance, your insurer may step in and pay for the costs associated with the breach, which could range from legal fees to client notification fees, credit monitoring, computer repair costs, etc.
  • Commercial general liability insurance: Commercial general liability coverage is a must for all businesses, including those that provide security services. This type of coverage protects against third party bodily injury and property damage claims brought against your business. In the event of such a claim, your policy may cover legal fees, medical expenses, damage repairs, and more. 
  • Commercial property insurance: Commercial property insurance is intended to safeguard your security office and any business-related contents, from property damage. However, for the property damage to be covered, it must have been caused by an insured peril. Perils vary from policy to policy but may include theft, vandalism, fire, water damage, and more. 
  • Legal expense insurance: Finally, adding legal expense coverage to your security business insurance may be wise as it provides your business with access to legal advice, along with a lawyer in the event of a lawsuit. More specifically, when you include legal expense insurance in your security insurance policy, you may receive unlimited access to a legal advice helpline allowing you to discuss any business-related legal or tax topic, and be covered against the costs incurred for pursuing or defending a claim, costs should the judge rule in favour of the other party, and the cost of disbursements (e.g. medical reports, court fees, or the cost of an expert witness).

Factors that may impact the cost of your security business insurance policy

Insurance companies far and wide use many factors to determine insurance premiums for businesses. Though these factors can vary between insurance providers, the following details will likely come into play when the premium for your security business insurance policy is being calculated: 

  • The precise security services you provide
  • The industry or industries your clients are in ex. nightclubs vs. manufacturing
  • The number of employees employed by your security business
  • Your insurance claims history
  • The annual and projected revenue of your security business
  • The size and location of your security company
  • The location of your clients
  • The number of years of experience you have working in the security industry
  • The deductibles, coverages, and limits you choose to include with your commercial policy

Please note that insurance brokers like ALIGNED do not set rates. However, we can help you understand how insurance companies calculate premiums and even provide you with an accurate and competitive quote. When you chat with an ALIGNED insurance expert, they can also explain the risks your security business faces and ensure you choose the right coverage to protect against them. 

Should I include cyber liability coverage in my security service insurance policy?

Yes, we strongly recommend adding cyber liability coverage if you operate a security company. Why? Security companies may be at a higher risk of data breaches, hacks, or cyber attacks due to the sensitive nature of your work. Therefore, storing any confidential or sensitive data on your computer system is a major liability – unless you have cyber liability insurance. This type of coverage can protect your security business from the cost of claims or lawsuits related to a cyber incident. 

ALIGN your security services company with quality commercial insurance coverage

As a security business, you understand the importance of protection. Secure the financial health of your business by choosing security service insurance coverage that protects you against all kinds of risks. The experts at ALIGNED will work to find a policy that meets your needs and budget. Get in touch today to learn more about security service insurance or click here for a free quote.

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