A lot of emergency services and auxiliary tasks are being rerouted to third parties in today’s market: ambulances are privatizing, local governments are contracting out municipal services, and people are relying on private security more and more. This means a lot of people are launching into security businesses without the years of experience that established companies have. While this doesn’t necessarily mean they are uninsurable, it does mean they are riskier clients. This is why it is important to consider professional liability insurance for security guards.
What specific coverage should be in their policies to mitigate that risk?
While general liability coverage is always a good choice, it has some gaps that the security guard business highlights quite clearly. These gaps can include:
- Third-parties claims about false arrests in which the claimant wasn’t injured don’t generally fall under general liability coverage areas.
- If your client’s employee varies his normal schedule and doesn’t catch a trespasser or aggressor.
Because these acts are alleged failures of a professional to do work that falls under his expertise properly, only professional liability insurance covers for these occurrences. Anything that falls under the potential domain of a professional failure isn’t generally covered, and explaining with concrete examples can help persuade your client of the importance of adding more professional liability insurance to their business’s policy.
Even if you have clients that offer security consulting instead of actual services or goods, they need to have a policy that protects their business from claims about the advice given to their customers. Professional liability insurance, or errors & omissions insurance is for both services and advice, and it helps bear the cost of:
- defense against negligence claims
- damages in a civil suit
- claims related to misrepresentation, inaccurate advice, and violation of good faith
If you have a risky client who needs excess professional liability coverage, go to Prime Insurance Company to organize a new policy.