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Security Guard Insurance: Insurance for Security Companies

For your business best protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!


For your business best protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

You also need insurance just like law enforcers and private investigators. Security guard insurance offers comprehensive general liability, professional liability, workers' compensation, commercial property, commercial auto, and other policies. Read to know the cost of premiums, the function and limits of each policy, and compare quotes online for free. 

What Insurance is Required for A Security Company?

States, such as New York, Texas, and Connecticut, require you to carry a general liability insurance policy or a bond offering $100,000-$1 million coverage for third-party bodily injuries or property damage. Compliance with private patrol operator insurance requirements must be observed when applying for a license, providing security services, and renewing the license.


Liability Insurance for Security Company

General liability insurance, public liability insurance, and professional liability insurance are different forms of the liability insurance for security company. Get these to satisfy state and contract requirements.


General Liability Insurance for Security Guard Company


Value
General liability per occurrence limit$300,000-$2 million
General liability aggregate limit$2 million-$5 million
Products and completed operations coverage limit$2 million
Advertising injury coverage limit$1 million
Rented premises liability coverage limit$300,000
Customer property floater coverage limit$1,500-$3,000
Key lock loss and replacement floater coverage limit$500-$1,500
Medical payments coverage limit$5,000


You need $2 million general liability insurance for security guard company. General liability insurance grants protection when your business is liable for the bodily injuries or property damage of third parties.

Here are some situations where you’ll find security guard general liability insurance useful:

  • The security guards of your company manhandled or assaulted the attendee of an event

  • A client slips and falls while in the office of your security company

  • The gun of your company’s armed guard fires off and injures a pedestrian


You can use general liability insurance to cover these expenses each time a third party files a claim for bodily injuries or property damage against your security company:

  • Medical treatments

  • Refunds for property damage

  • Settlements

  • Defense costs

  • Court judgments


Aside from claims for bodily injuries or property damage, general liability insurance also covers these exposures:

  • Wrongful arrest

  • Invasion of privacy

  • Copyright infringement, slander, or libel

  • Fire damage to the landlord’s property


General liability insurance is available as a short-term policy that lasts for hours, days, weeks, or months. Consider getting this if you’re looking for instant armed guard insurance coverage that will satisfy contract requirements.

Sometimes, the general liability policy of armed security guard insurance programs can have client property and key lock or loss endorsements.

Client property endorsement allows general liability insurance to indemnify a client if his property got damaged while in your custody or control. On the other hand, key lock loss or damage endorsement allows general liability to cover key and lock replacement as well as locksmith service expenses.


Public Liability Insurance for Security Company

A public liability insurance for security company covers claims for bodily injuries or property damage. It doesn’t grant protection against other liability exposures. In the USA, public liability insurance is automatically included as part of your security company’s general liability insurance.


Professional Liability Insurance for Security Guards


Value
Professional liability per occurrence limit$1 million-$2 million
Professional liability aggregate limit$2 million-$4 million


Unlike general liability insurance, professional liability insurance for security guards isn’t required to operate legally. Nonetheless, consider getting this.

You need at least $1 million-$2 million professional liability insurance. You’ll find this useful when:

  • The security guard of your security company failed to subdue the drunk attendee of an event

  • The security guard of your security company failed to help or call authorities while someone is being assaulted or robbed

  • The security guard of your company didn’t do his evening patrol. And as a result, thieves broke into the client’s warehouse

  • The security guard your company assigned to guard a jewelry store left his post to run a personal errand


Professional liability insurance for security companies covers claims for negligence, violation of good faith, violation of fair dealing, inaccurate advice, breach of confidentiality, and other related exposures. This is available as an occurrence or claims-made policy.


Excess Liability Insurance for Security Company

Your security company’s general liability insurance or professional liability insurance might automatically come with excess liability insurance.

Excess liability insurance for security company provides coverage when general liability or professional liability insurance has run out or lacks the necessary funds to cover a claim fully. In other words, its job is to cover any excess you need to pay.

You purchase excess liability insurance in $1 million increments. We recommend you get $3 million-$5 million worth of this security guard insurance coverage.

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Commercial Auto Insurance for Security Companies


Value 
Auto liability coverage limit $100,000 per bodily injury
$300,000 per accident 
$100,000 per property damage
Uninsured motorist coverage limit $50,000 per bodily injury
$100,000 per accident 
Underinsured motorist coverage limit $50,000 per bodily injury
$100,000 per accident 
Medical payments coverage limit $5,000

You can add a commercial auto policy to your security guard company insurance. Use this to cover the commercial vehicles of your business that employees use to reach work locations and conduct patrols. Commercial auto insurance has these coverages:


Auto Liability Coverage

Your security company is responsible if its vehicle causes an accident and injures third parties or damages properties. Auto liability coverage in commercial auto insurance assumes such responsibility and will pay for the medical expenses of injured persons 


Physical Damage Coverage

Physical damage coverage will shoulder your commercial vehicle’s parts repair or replacement. It has two types-collision and comprehensive. 

Comprehensive physical damage coverage will take care of parts repair or replacement if your security company’s commercial vehicle incurred damage due to fire, theft, vandalism, hail, storm, and other covered perils.

If your business’s commercial vehicle incurred damage after colliding with a vehicle or object, collision physical damage coverage will take care of parts repair or replacement. 


Uninsured/Underinsured Motorist Coverage 

Uninsured/underinsured motorist coverage will cover the medical expenses of the driver and passengers if the commercial vehicle of your security company gets involved in an accident that a driver with no insurance or doesn’t have enough insurance caused. 


MedPay/Personal Injury Protection 

MedPay and personal injury protection will cover medical expenses if your security company’s vehicle caused an accident or got involved in an accident that resulted in injuries to the driver and the passengers. 


Commercial Property Insurance for Security Guard Companies


Value
Building coverage limit (minimum)$25,000-$100,000
Contents coverage limit (minimum)$25,000-$100,000
Signs, fences, and other outdoor installations coverage limit $2,500
Credit card slip, loss, or damage coverage limit $10,000
Employee dishonesty coverage limit $10,000
Accounts receivable coverage limit $5,000-$10,000
Personal effects coverage limit $2,500

Security industry insurance plans will offer a commercial property policy. Commercial property insurance protects the owned, rented, or leased office where you keep documents, train security personnel, admit clients, and store equipment. 

This armed security insurance policy will reimburse your losses if the office gets destroyed or damaged by:

  • Fire

  • Theft

  • Vandalism

  • Riot

  • Civil commotion

  • Malicious mischief

  • Sinkhole collapse

  • Volcanic action

  • Lightning

  • Impact

  • Vehicle

  • Aircraft

  • Winds

  • Snow 

  • Hail

  • Rain

  • Sprinkler leakage


The coverage of commercial property insurance doesn’t only apply to the office but also to the objects inside. And so, you can also use this business insurance for security company when employee personal effects, credit cards, important documents, computers, furniture, guns, and other valuables get lost or damaged. 

Commercial property insurance doesn’t protect your security company against earthquakes, floods, mudslides, and landslides. However, there are endorsements in security guard insurance programs that cover these perils. 


Workers Compensation Insurance for Security Guards 

Security service is dangerous. Personnel can get hit by something, get involved in shootouts, or even experience health problems. Because of this, a worker's compensation policy is always included in security company insurance plans. 

Your security company needs to get workers' compensation insurance as soon as it employs one or more people. Failure to do so will result in a cease and desist order, an accumulating fine, or imprisonment. 

So how does the policy work? Workers' compensation insurance will take care of these expenses when an employee of your security company sustains a work-related injury or disease:

  • Medical treatment/procedure-If a security guard working for your security company gets involved in a shootout and sustains injuries, workers compensation insurance will pay for all the necessary medical treatment and procedure such as surgeries, therapies, and more 

  • Hospitalization-Workers' compensation insurance will cover bills if an injured or sick employee needs intensive hospitalization. Coverage applies regardless of where the employee is admitted

  • Medication-Workers' compensation insurance covers expenses for medicines and other substances the attending physician requires an injured or sick employee to take 

  • Rehabilitation-Rehab might be needed especially if an employee experiences an illness or sickness that reduces his quality of life. In line with this, workers' compensation insurance will pay the costs for rehab such as therapist fees, equipment, and others 

  • Lost income compensation-If an employee of your security company requests a leave to continue healing a work-related injury or illness, workers' compensation insurance will supplement lost income. The employee will receive a weekly allowance equal to two-thirds or 67% of the average weekly wage

  • Death benefits-Workers' compensation insurance takes care of funeral expenses and provides money to dependents if an employee of your security company dies due to a work-related injury or disease


Employer’s Liability Insurance for Security Guard Companies 


Value
Each employee injury by disease coverage limit $1 million 
Each employee injury by accident coverage limit $1 million 
Each employee injury per policy limit $1 million 

Employer’s liability insurance is automatically included in workers' compensation insurance. Some insurance companies allow you to exclude this to make premiums cheaper. 

Any employee, who sustained a work-related injury or disease, can sue for negligence if your security company didn’t provide adequate training, safe work conditions, or compensation. 

Employer’s liability insurance kicks in for such a situation. And it will pay settlements, defense costs, and court judgments on your behalf. 

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Armed Security Guard Insurance Cost


Cost per MonthCost per Year
General liability insurance$105$1,260
Professional liability insurance$119$1,428
Workers compensation insurance$125$1,500
Commercial property insurance$110$1,320
Business owner’s policy$115$1,380

Expect to pay $105 per month or $1,260 per year for a $1 million general liability insurance for armed security guards. This armed security guard insurance cost estimate assumes that you have 5 employees and generate $500,000-$750,000 revenue per year. 

Carriers determine the cost of premiums based on your business history, location, claims history, number of employees, revenues, types of security services you provide, and the clients you usually work with. 

This table shows the rates of the best security guard insurance companies so that you have a better idea of the actual cost of premiums:


Cost per MonthCost per YearBest for
CoverWallet$48.41$580.92Security guard insurance quotes comparison online
NEXT$51$612Best overall; Fastest general liability insurance for security guards
Tivly $51$612Comparing security guard insurance quotes over the phone
Hiscox$60$720General liability and professional liability insurance with worldwide coverage for security companies 
Xinsurance$90$1,080Clients looking for customized coverage
RLI$104$1,248Larger private security firms


Buy security guard insurance at a reasonable price by comparing quotes. Click the “Get Quotes” button on this page to start. 

Compare Security Business Insurance Quotes

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Best Security Guard Insurance Companies

Read some of the reviews below to know the pros, cons, and general liability insurance rates of the best security guard insurance companies. 


NEXT Security Guard Insurance

Pros

  • Best overall

  • Get an online proof of insurance and send as a text message, email, or social media post

  • Fastest general liability insurance for security guards

  • Great customer service and reputation

  • Issues an online proof of insurance instantly

  • Outstanding value for money

  • Bundle two or more insurance policies and get a 10% discount

Cons

  • Security guard insurance policies are underwritten by Tivly

NEXT works with Tivly to cover security guards with general liability insurance, professional liability insurance, and commercial auto insurance. Your general liability policy from this company has a $1 million per occurrence limit and a $2 million aggregate. Professional liability insurance, on the other hand, has a $1 million per occurrence and aggregate limit. 

Best for: Best overall; Fastest general liability insurance for security guards

Average cost: $51 per month

Our rating: 10/10


CoverWallet Security Guard Insurance

Pros

  • Security guard insurance quotes comparison online

  • Cancel a policy anytime

  • Pay premiums online

  • Free certificates of insurance

Cons

  • Not an insurance company but an insurance broker

CoverWallet's tailored insurance for security guard companies offers four insurance options-general liability only, general liability and commercial property, business owner’s policy with workers compensation insurance, and a custom plan. Allow us to emphasize that this insurance broker’s commercial property insurance for security guard companies provides coverage for equipment breakdown and lost revenues.

Best for: Security guard insurance quotes comparison online

Average cost: $48.41 per month 

Our rating: 10/10


Tivly Security Guard Insurance

Pros

  • Responsive customer service

  • Call and compare security guard insurance quotes over the phone

  • A partner of many reputable insurance companies 

Cons

  • You need to call to get a quote 

Tivly’s (formerly CommercialInsurance.NET) tailored coverage for private security contractors offers general liability insurance, workers compensation insurance, commercial auto insurance, and more. Many reputable insurance companies will refer you to this carrier if they can’t provide coverage.

Call Tivly now to start your security guard insurance application and compare quotes over the phone with the help of a representative. 

Best for: Comparing security guard insurance quotes over the phone

Average cost: $51 per month

Our rating: 10/10


Hiscox Security Guard Insurance

Pros

  • Worldwide coverage

  • 14-day money-back guarantee

  • Customizable limits

Cons

  • Poor customer reviews on BBB

Hiscox offers professional liability and general liability insurance for security companies. You get to choose limits between $250,000-$2 million. Moreover, your professional liability and general liability policies provide worldwide coverage

Best for: General liability and professional liability insurance with worldwide coverage for security companies 

Average cost: $60 per month

Our rating: 10/10


XINSURANCE Security Guard Insurance

Pros

  • Wide range of policies

  • Reasonable price

  • Many add-ons

Cons

  • Not available in some states

XINSURANCE exists to fill gaps in the insurance market by taking on high-risk clients that other carriers may not be willing to work with. XINSURANCE’s parent company is Evolutions Insurance Brokers LLC, which also sells coverage for security dog companies. 

XINSURANCE’s security officer insurance is available for both armed and unarmed guards, and it can even be tailored to fit doormen. They offer policies for individual security guards working under contract as well as entire security firms, so the company is more than willing to customize your policy to your liking. 

Best for: Clients looking for customized coverage

Average cost: $90 per month 

Our rating: 9/10


RLI Corp Security Guard Insurance

Pros

  • Key and lock replacement included

  • Higher policy limits

  • Coverage available in all 50 states

Cons

  • No online quote 

RLI security guard insurance is a specialized general liability insurance policy having errors and omissions coverage, key and lock loss replacement coverage, customer property coverage, waiver of subrogation, and others. 

You can also include optional policies such as employment benefits liability coverage, hired and non-owned auto liability coverage, and stop gap liability insurance.  

Your general liability insurance from this company has a $1 million per occurrence with up to $5 million aggregate. You can name an unlimited number of additional insureds, and even decide to pay zero deductibles. 

Best for: Larger private security firms

Average cost: $104 per month 

Our rating: 7/10


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