Essential Insurance Policies for Security Guard Companies

Whether you're launching a start-up or operating a well-established company, insurance is indispensable. This is because the business landscape is full of unpredictabilities, and nothing is ever assured. Hence, it's essential for businesses (especially security firms) to safeguard themselves with insurance.

Critical Insurances for Security Guard Companies 

Security guard businesses, even more so than many other professions, are always dealing with potentially high risks. Even one such risk becoming a reality could lead to the dissolution of the firm - unless you have the proper insurance coverage. Therefore, insurance has to be considered as a non-negotiable component of your security guard business. Even without considering your own long-term business interests, many of your clients will require that you have specific coverage and limits in order to sign a contract in the first place.

The Right Insurance Policies for Your Security Guard Business

The kind of clients you serve, and the scale of your security guard company largely determine the insurance policies you need. Custom-made insurance policies are typically designed to meet specific business needs.

This helps us to provide you with the exact coverage you need, and no more. Tailoring your insurance policies means you're not paying premiums for coverage you don't need. That said, there are policies we recommend that every security firm should have:

1. General Liability Insurance

What Is General Liability Insurance?

General Liability Insurance (GLI) is designed to offer coverage to businesses against general claims. These claims can include bodily injuries or property damage caused by your company. It's arguably one of the most basic and essential coverages that businesses require.

In many cases, proof of general liability is a prerequisite for obtaining a business license.

Why Do You Need General Liability Insurance?

General liability insurance, often considered a type of commercial insurance, protects your security guard business from financial losses. However, these claims must arise from property damage or bodily injuries. For instance, if your security officer is involved in an accident while on duty, resulting in injuries or property damage to a third party, this insurance will cover the losses.

2. Commercial Auto Insurance Policies

What is Commercial Auto Insurance?

Commercial Auto Insurance is usually required by businesses that use vehicles. For security companies, these vehicles often include patrol cars. Given that security guards need to move across various locations, even a small security company will need at least one vehicle. In such cases, insuring your patrol vehicles can prevent losses when accidents occur.

Why Do You Need Commercial Auto Insurance?

Commercial Auto Insurance covers the damages for your vehicle and other vehicles involved in an accident. Moreover, these policies cover employees who were driving at the time of the accident. Any property damage caused due to the vehicle accident is also covered by this policy.

3. Worker’s Compensation Insurance Policies

What is Worker’s Compensation Insurance?

Worker’s Compensation Insurance is designed to help businesses cover any claims or lawsuits filed by their employees for losses or damages caused at work. In most regions, worker’s compensation insurance is mandatory for security businesses. It is required by law to ensure employee welfare.

Why Do You Need Worker’s Compensation Insurance?

In the event of job loss, work-related injuries, loss of wages due to injuries, workplace accidents resulting in death, or any other loss incurred due to employer negligence, employees or their families may claim coverage. These policies guarantee compensation for employees without putting your company’s future at risk.

4. Commercial Umbrella Insurance Policies

What is Commercial Umbrella Insurance?

Security guard businesses often offer services that pose risks to their employees. Though these risks cannot always be fully avoided for security firms, the potential dangers can be mitigated. For risks regularly incurred by security firms, a commercial umbrella insurance policy is highly recommended. This policy provides coverage for a range of claims and helps businesses pay any required compensation in the event of a claim.

Why Do You Need Commercial Umbrella Insurance?

These policies offer more extensive coverage than typical business insurance policies. For example, if your security guard business faces a lawsuit demanding significant compensation, an umbrella insurance policy can cover excess losses, minimizing your business's potential financial burden.

5. Professional Liability Insurance Policy

What is Professional Liability Insurance?

Professional Liability Insurance covers damages resulting from a lack of professionalism from your company. For example, if a client incurs losses due to an error on your part, a professional liability insurance policy can cover your losses.

Why Do You Need Professional Liability Insurance?

This policy is particularly beneficial for security guard businesses. Regrettably, there can be instances of false apprehension that lead to further complications. In such scenarios, a professional liability insurance policy can help you navigate the situation with minimal repercussions.

Guard Your Business with Security Safeguard
By opting for a specialized insurance solution like DII’s Security SafeGuard, security firms can rest assured that they have the necessary coverages in place to protect their business, employees, and clients. This investment in tailored insurance not only safeguards the company's financial stability and reputation but also contributes to its long-term success and competitive advantage in the marketplace.

Contact us today to learn about how Security Safeguard can protect you and your business:

Alex McGovern   

P. 410-319-0678  |  C. 443-388-1003

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