Running a security guard company comes with a lot of responsibilities. Figuring out the right insurance is a big part of that.

Security company insurance costs can add up, but the right coverage is essential to protect your business, your team, and your clients.

Whether it's liability, workers' comp, or coverage for your patrol vehicles, you must have the right policies in place.

Let’s break down the types of insurance you need, what they typically cost, and how Belfry can help simplify and enhance your operations to keep your business running full steam ahead.

‍

Insurance coverage for security companies + their average costs

Running a security company means you need different types of insurance to cover all the bases. Here’s the main types of insurance you'll need and what they usually cost:

General liability insurance

Coverage: General liability insurance covers your business if someone gets hurt or property gets damaged during your work. For instance, if a guard accidentally breaks something at a client's place or someone gets injured on your watch, this insurance takes care of the legal costs and damages.

Cost: The average cost of commercial general liability insurance for contracting businesses in the US will greatly depend on your business size and how much coverage you need. It can cover things like slips and falls, accidental damage, and even defamation claims.

‍

Professional liability insurance

Coverage: Also called errors and omissions (E&O) insurance, professional liability insurance protects you if someone claims you made a mistake or didn’t do your job right. For example, if a client says a security lapse on your watch led to a break-in, this insurance can cover the legal costs and any settlements.

Cost: Commercial businesses could be looking at around $1,034 per year. It covers situations like installing the wrong security system or not preventing a theft.

‍

Assault and battery insurance

Coverage: Assault and battery insurance is important for security companies working in high-risk areas where fights or confrontations might happen. It covers claims if your security staff have to use force.

Cost: The premium costs vary from state to state based on risk levels, economic conditions, and local regulations. It typically covers medical expenses and legal fees from incidents where force was used.

‍

Firearm insurance

Coverage: For companies with armed guards, firearm insurance covers incidents involving the use of firearms, including accidental shootings and liability claims. For example, if an armed guard accidentally discharges their weapon and injures a bystander, this insurance will cover the legal fees, settlements, and medical costs associated with the incident.

Cost: The total amount varies depending on how many armed guards you have and the level of risk. Most companies could be looking at around $100 per firearm per year. This is increased by the need for gun liability insurance, which can also be as low as $100 per year. It covers legal fees, settlements, and medical costs from firearm-related incidents.

‍

Workers' compensation insurance

Coverage: Workers’ compensation insurance is required to cover medical bills and lost wages for employees who get hurt at work. It also provides disability benefits for more serious injuries, such as fractures, severe burns, or injuries requiring surgery.

Cost: The cost varies by state but, according to The Hartford, the average cost per security guard is around $1000 per year. It's crucial for covering all types of work injuries, from minor accidents to serious incidents needing long-term care.

‍

Commercial property insurance

Coverage: This insurance covers the physical stuff your business owns, like your office, equipment, and inventory. It protects you if there's a fire, theft, vandalism, or a natural disaster.

Cost: Smaller businesses can expect to pay an average of $800 per year, depending on how much your property and equipment are worth. Coverage includes your office spaces, security gear, and other business assets.

‍

Commercial auto insurance

Coverage: If your security company uses patrol vehicles, you'll need commercial auto insurance. This covers you if one of your vehicles gets into an accident, is stolen, or vandalized. It also takes care of any liability issues if your driver is at fault in an accident.

Cost: You can expect to pay an average of $1,588 per vehicle each year. The cost depends on things like how many vehicles you have and how much you drive them. It covers the repair costs for accidents, replacements if a vehicle gets stolen, and any damage from vandalism.

‍

Commercial crime insurance

Coverage: This insurance protects your business from theft, forgery, and employee dishonesty. It safeguards against financial losses from crimes committed by both outsiders and your own employees. For example, if an employee embezzles money or someone forges checks, this insurance has you covered.

Cost: Premiums for small businesses usually range from $650 to $2,500 a year. The exact amount depends on the size of your business and the level of risk. It covers incidents like employee theft, embezzlement, and forgery, helping you recover financially from these types of crimes.

‍

Commercial umbrella insurance

Coverage: Think of this as extra protection for your business. Commercial umbrella insurance kicks in when the costs of a claim exceed the limits of your standard liability policies, like general liability, auto, or professional liability. It's there to cover those big claims that could otherwise put your business at risk.

Cost: Costs depend on policy. The average cost for a policy of $1 million is around $1,500 per year whereas a smaller company would look to pay close to $900 annually. It's a good safety net for large claims that go beyond what your other insurance policies cover. This way, if a major incident happens, you have that extra layer of coverage to keep your business protected.

‍

Potential insurance providers for security companies

The Hartford

The Hartford is a well-known name in business insurance, offering a range of policies specifically for security companies. They cover everything from general liability to professional liability and workers' compensation.

They provide industry-specific coverage and top-notch customer service, making them a reliable choice for security businesses.

‍

GuardPro

GuardPro specializes in security guard insurance. They offer various policies tailored to the unique needs of security companies, including general liability and firearm insurance.

Because they focus on the security industry, they understand the specific risks and can offer the right coverage options.

‍

How to choose the right insurance provider

Picking the right insurance provider is key to keeping your security company protected. Here’s what to think about:

Know what you need

Look at your specific operations and risks. Do you handle high-value clients, work in risky areas, or offer specialized services? Make sure the provider covers these specifics. For example, if you have armed guards, you'll need coverage that addresses firearm-related incidents.

‍

Get multiple quotes

Don’t just go with the first quote you get. Compare prices and coverage from different providers to find the best deal for your budget. Make sure to consider both the cost and the coverage details to ensure you're getting the best value.

‍

Check their reputation

Research potential providers. Look for reviews from other security companies and check ratings from independent agencies to see if they’re reliable and provide good service. A company with a good track record is more likely to be dependable when you need them.

‍

Test customer service

Good customer service is crucial, especially when you need to file a claim. Check how responsive they are and how well they answer your questions. Try calling their support line to see how quickly they respond and how helpful they are.

‍

Understand the claims process

Make sure the claims process is clear and quick. Ask about how they handle claims and how long it usually takes to get payouts. Knowing this can save you a lot of stress when you actually need to make a claim.

‍

Look for industry know-how

Choose providers with experience in the security industry. They’ll better understand your needs and risks, offering more relevant coverage. Providers who specialize in security companies will know the ins and outs of your business and can tailor their policies accordingly.

‍

Read the fine print

Go through the policy terms carefully to verify there are no hidden exclusions or limitations that could leave you exposed. Pay attention to the details to avoid surprises later on.

‍

Ask about discounts

See if there are any discounts for bundling policies or maintaining a good safety record. This can help lower your insurance costs. Many insurers offer significant savings if you meet certain criteria, so it's worth asking about.

‍

Questions to consider when choosing insurance

What specific coverage does my security company need?

Look at the unique risks of your operations. Do you have armed guards? Do you handle high-value properties? Make a list of your services and match them to the right insurance policies.

‍

How does the risk level of our operations affect our premiums?

The higher the risk, the higher the premiums. Understand how activities like handling cash or working in high-crime areas can impact your costs.

‍

What are the insurance requirements in our state?

Each state has different laws. Make sure you meet all legal requirements to avoid fines and certify you're fully protected.

‍

What is our budget for insurance?

Determine how much you can spend on insurance. Balance the cost with the level of coverage you need.

‍

How often should we review our coverage?

Regularly check if your current policies still match your needs, especially if your business expands or changes its services.

‍

What are the deductibles and limits on our policies?

Know how much you'll pay out of pocket before insurance kicks in and the maximum amount the insurance will pay.

‍

Do we need any specialized coverage?

If you offer unique services, like executive protection, you might need specific policies tailored to those risks.

‍

How does the insurer handle claims?

Look into the insurer's process for handling claims. You want a provider with a straightforward, hassle-free claims process.

‍

Enhance security guard company operations with Belfry

Security company insurance costs are an important part of running a security guard company. It means making sure you have the right insurance for the coverage you need. Similarly, having the right security company software can be just as important. Applying for insurance coverage and getting the best rates means you’ll need to have your operating data in order.

‍

Belfry provides built-in payroll management as a feature, allowing you to easily produce reports for insurance applications and audits, which would otherwise take days or weeks if done manually.

Belfry also helps streamline and improve your security operations, making the entire process that much easier.

Belfry offers:

• Easy workers’ comp reporting: Automated reports for hours & wages based on employee WC codes — eliminating the need to manually gather reports for each audit.
  ‍
• Effortless scheduling: Our platform makes shift planning a breeze, guaranteeing your guards are always where they need to be.
  ‍
• Instant reporting: Guards can file reports directly from the field, speeding up communication and assuring accuracy.
  ‍
• Real-time GPS tracking: Monitor guard locations live to enhance safety and accountability.
  ‍
• Mobile app access: Guards can access schedules, file reports, and stay connected through our easy-to-use app.

‍

Schedule a Free Demo Today.