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Security Guard Insurance

This is blog was created to help the security guard professional better understand their insurance options.

Reviewing the Current GL Policy: Make Sure Your Current GL Policy Includes the Following

Craig Mount Craig Mount , 12/4/2014
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Not all security guard liability insurance policies are created equal. General liability policies vary from carrier to carrier and the differences can be difficult to detect. Below I have listed important coverage’s and endorsements that should be taken into consideration before determining the best liability policy for your security guard company.

Claims Made vs. Occurrence Deductible: A claims made deductible will require you to pay the deductible amount for each claim that is brought forward out of an occurrence. Often times there can be multiple claims from the one occurrence. If the deductible is $2,500 per claim, and there are 5 claims from one occurrence, the guard company would be required to pay $12,500 to the carrier. However, If the deductible was on an occurrence the security guard company would only be required to pay the one time deductible of $2,500. Is the General Liability Policy Auditable?  The carrier bases the security guard liability exposure off of annual guard hours billed or annual guard payroll. You will be asked to estimate the hours and/or payroll for the upcoming policy year. At the expiration of that policy the carrier will audit the actual hours and/or payroll to determine the exact amount of guard exposure. There are many security guard liability policies the only audit up. This means if you under-estimated the hours and/or payroll, the carrier will invoice you for the additional premium due. However, if you over-estimated, no premium will be returned. As a business owner, you need to make sure the security guard liability insurance program you choose is auditable in both directions. Does the Policy Exclude or Include Punitive or Exemplary Damages? Punitive/Exemplary damages are monetary compensation awarded to the injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. Make certain that the liability policy includes coverage for punitive or exemplary damages and that the coverage is provided at the full limit of the policy. Care, Custody and Control: Security guard companies can be found liable for the property they are guarding or that is in their care, custody and control. If the property is lost, stolen, damaged, etc the property owner can file a claim against the security guard companies seeking repair or replacement for the damages property. Some liability policies include the C,C & C endorsement, however, the limit on the endorsement is much less than the policy limit. The cost to replace or repair damaged property often exceeds the sub-limit provided by certain carriers. Mobile Equipment (Golf Carts): Does your security guard contracts require your guards to operate mobile equipment? If so, double check the general liability policy to insure that mobile equipment is endorsed onto the policy. If the coverage is not currently on the GL policy, you can add the mobile equipment endorsement to the liability policy for an additional premium. Lost Key Coverage:If you have contract that requires you to have the master key, you want to make sure you have this coverage in place. Lost Key Coverage will provide coverage in the event the master key is lost and the building has to be re-keyed. The cost to re-key a building can become excessive depending on the amount of locks to be replaced. Typically, Lost Key Coverage can be added to the liability policy at a sub-limit.