Insurance for the Security Industry
Security operations provide guards and security people for customers’ premises and also may provide alarms and security systems.
At Business Insurance Service, we understand not just the insurance industry, but the commercial sector too. Our brokers have years of experience and expertise in finding professionals from across all disciplines the right kind of Liability and Professional Indemnity insurance cover for professionals, giving both sole traders, SMEs, and large security operations the protection they need.
What insurance does a Security Company need?
Minimum recommended cover can usually be arranged on a Commercial Combined policy to include Buildings, Computer Equipment & General Contents, Increased Expenditure, Employee Dishonesty, Public Liability, Employers’ Liability
Property exposures usually are not high. In most cases, property consists of an office and vehicle storage. If an alarm or monitoring service is provided, there are wiring and monitoring equipment concerns from the electronics.
Premises liability is minimal since clients should not be on premises except as a possible tour. Access must be extremely limited at all times. Off-premises exposure is extensive and will normally fall under the professional.
Crime exposure is from Employee Dishonesty both from the employer and the client. Background checks of all employees including verification of criminal records, education and employment background.
Employers’ liability exposure is high. Guards are alone in dark areas where people might want to steal things. Check-in procedures, instruction, and training on how to handle trespassers and emergency situations are all important to review. If guards use vehicles, they must have training in proper evasive manoeuvres. Any firearm use must be permitted only after there is extensive training and periodic recertification. Who owns the weapon and where is the weapon kept after work?
Professional liability is involved because the intent of guard and security services is to provide customers with safety and security to their property and person. Anytime a loss occurs to the property or person of a customer from services provided by the security agency, such as fire and crime, the security service will have to account how for how it failed in its professional duty.
Because more and more emphasis is being placed on security, the commitments and promises of the security operation are important to review and evaluate. Training, supervision and monitoring are crucial to the operations. It is also important to have a clear contract, with each client explaining services and offering advice. These agreements must be signed, and it should be noted where services were recommended and not taken.
Commercial Vehicle / Motor Fleet
Motor liability can be extensive if mobile patrols are offered. Age, training, experience, and records of the drivers, as well as age, condition, and maintenance of the vehicles, are all important items to consider. Driving records must be acceptable prior to hire and should be run on a regular basis. Vehicle maintenance records must be kept in a central location. If vehicles are taken home there must be policies in place regarding personal and permitted use.
What other risks do the Security Industry face?
Other losses can result from the mobile equipment, radios, base station, walkie-talkies and other items the guards and watchpersons carry on their persons or in their vehicles. Surveillance equipment is highly sophisticated, sensitive and a theft attraction. All equipment must be secured and locked when not in use. Is there a procedure of returning items to a central location after use or are items taken home? What about inventory control? Deeds and documents are important and must be protected since these will include contracts and review of security needs of customers.
Safety Matters: Security Guard Safety
This toolbox talk discusses how to keep security guards safe while on-site.
Why not discover more about Business Insurance Service? Or simply get in touch with our services today.
How can Business Insurance Service help Security Companies?
Whether you’re a sole trader or a small to large company, your insurance portfolio has to be up to date and provide you and your business with the right level of protection. Rather than trying to find liability or professional indemnity insurance by hunting through countless websites, let us or our website do it for you.
We’re members of the British Insurance Brokers Association (BIBA) and work with some of the largest and best-known insurance providers in the UK, including Lloyds of London for larger, more complex and high-risk customers. We’re fully regulated and committed to delivering a premium quality, trustworthy and reliable service to all our customers, regardless of size.
As preferred brokers working with some of the largest insurance providers in the UK, we have immediate access to a huge range of policies for various businesses, including vets and surgeries. We provide our customers with a bespoke or package service, creating insurance portfolios that are specifically tailored to your individual needs, and your budget.