For over 50 years, the Vidal Insurance Agency has been placing insurance for industries whose risks are complex and often difficult to find coverage for at affordable prices. One such industry is Security Services which ranges from alarm and surveillance system installers to actual armed guards.
Due to the rising frequency of home invasions, armed robberies, and mass shootings, security systems have become the front line of the ever growing security infrastructure upon which our society has come to depend. Recent improvements in camera technology, combined with greater affordability, have made security systems more popular than ever for home and business owners alike. Walk down any street and you’ll see building after building with cameras overlooking their property and entrances. Go inside and you’ll see more cameras peering down every hallway.
But what happens when a security system fails to perform as designed due to faulty equipment or improper installation, resulting in property loss, physical injury or death? Unless the installation company has the right liability insurance coverage, such a loss could be financially devastating, not to mention the damage done to the reputation of the company and the individuals who run it.
The same can happen with Fire Detection and Suppression System installers. If the system doesn’t function properly, the loss of physical property and human life can be catastrophic.
Not surprising, one of the most difficult areas of the security services industry to insure are security guards. Security guards face many of the same physical risks and psychological strains as police officers, but with far less oversight, supervision or training. While some guards may have past police experience, most do not. Still, even with the best training, accidents or mistakes in judgment can be made in the heat of an altercation or emergency that could result in serious physical or personal injury to members of the public.
Liability claims can arise from such things as abuse of authority or employee dishonesty. Other claims that may occur are when the subject of a surveillance or detainment sues for false arrest, assault & battery, invasion of privacy, malicious prosecution, libel or slander. Defense costs alone could easily bankrupt a company. And settlement costs can reach into the millions of dollars.
Is it any wonder so many insurance companies shy away from selling liability policies to this industry? Luckily, where there’s a risk there’s a way.
The Vidal Insurance Agency represents what is possibly the best business owners insurance program in the industry, designed specifically for Security Services. Unlike most standard Business Owners Policies, this program includes Professional Liability (aka Errors & Omissions) as part of the General Liability coverage. By including Professional Liability coverage with the General Liability, insureds are able to reduce their overall cost compared to purchasing a separate, standalone Professional Liability policy.
The program includes the following important coverage and options (refer to your actual insurance policy and endorsements for complete coverage details):
- Security Services Professional Liability coverage (errors & omissions)
- Coverage for use of firearms
- False arrest coverage
- Assault & battery
- Broad form property damage
- Personal injury coverage
- Lost key coverage
- Wage freeze endorsement available
- Abuse and molestation coverage available
If you would like a comprehensive insurance analysis and cost comparison, contact Bob Vidal at the Vidal Insurance Agency at 973-428-8200 today.