How much is security guard insurance?

The cost of general liability insurance for security guards depends on the area you patrol, the type of services you provide, and your business's size. It'll cost more for companies that patrol busy areas, carry weapons, or guard valuable real estate or other property.

General liability insurance covers costs if your business accidentally injures someone or damages their property. For instance, if a security guard accidentally knocks over a bystander when chasing a thief, this policy would pay for the bystander's medical bills, along with legal defense costs if your business is sued.

Due to the unique risks of the job, you will likely need additional coverage. That might include:

• Firearm liability insurance for armed guards
• Assault and battery insurance for claims related to physical force
• Bailee insurance to cover client property in your care, custody, or control

General liability insurance also pays for lawsuits related to advertising injuries, such as defamation or copyright infringement. It would cover legal defense costs if you published a photo of a client on your website without their permission, or slandered a competitor on social media.

You might need a general liability policy to rent an office, sign a contract with a client, or get a business license in your state. It shows your clients and partners that they're protected against financial losses from the most common risks.

Other factors that affect your premium include the policy limits and deductible you choose, along with any exclusions or endorsements. For instance, you may need to list a client as an additional insured on your policy.

You can often save money by bundling general liability coverage with commercial property insurance in a business owner's policy, or BOP.

For security companies, the cost of workers' compensation insurance depends on the number of employees you have and the type of work they do.

Workers' compensation pays for medical expenses and disability benefits in the event of an employee injury. For example, if a security guard trips in a dark stairwell and breaks their ankle, this policy would pay for their medical treatment and provide partial wages during their recovery.

Workers' compensation policies usually include employer's liability insurance. This type of coverage pays for legal costs if an employee sues their employer over an injury.

State laws often require businesses to secure workers' comp as soon as they hire their first employee, but that's not always the case. It's required in California and New York for every business with employees, in Florida for every business with four or more employees, and it's optional for most companies in Texas.

Even though workers' comp may not be required for sole proprietors or independent contractors, such as a self-employed security guard who works at private events, it's still recommended. Medical bills are expensive, and most health insurance plans can deny claims for injuries that happen on the job.

Other factors, such as the cost of healthcare in your state, can also affect your premium. You can save money on workers' comp by classifying your workers correctly and implementing a risk management program to help avoid injuries and subsequent claims.

The cost of commercial auto insurance for security firms depends on the number of vehicles you own, your employees' driving records, your policy's limits and deductible, and the coverage options you choose.

Commercial auto insurance covers bodily injuries and property damage if a company vehicle is involved in an accident. It'll pay for the other person's medical bills or repairs, including legal fees if your business is sued.

You can buy insurance coverage for other risks as well. For instance, collision insurance pays for your own repairs if your vehicle is damaged in a collision, while comprehensive insurance covers damage to your vehicle from other sources, such as hail, theft, and vandalism.

Almost every state requires commercial auto insurance for businesses that own a vehicle, as personal auto insurance won't cover business driving. To protect personal, rented, and leased vehicles used for work, you'd need hired and non-owned auto insurance (HNOA) instead.

Professional liability insurance costs mostly depend on your clients and the type of security services you provide. For instance, your company might offer patrol cars, video surveillance, bodyguards, private security for retailers, or doormen for residential buildings.

Professional liability insurance covers lawsuits related to professional negligence. It would pay for attorney's fees and other legal costs if a security guard was late for work and a crime occurred, or if a guard failed to notice a theft that took place on their watch.

You might see professional liability coverage referred to as errors and omissions insurance (E&O) in other industries. Partners and clients might require you to carry this type of insurance, as it'll pay for legal bills that might otherwise impact them.

The size of your company, your claims history, and the coverage limits and deductible you choose will also affect your premium.

The cost of cyber insurance depends on the amount of personal information stored by your security business, along with the risks associated with your specific profession. This policy is sometimes called cyber liability insurance or cybersecurity insurance.

Cyber insurance covers expenses related to cyberattacks and data breaches. It can pay for cyber incident investigations, provide reimbursement for ransomware payments, and help with costly customer notifications, which may be required by state laws after a breach.

Every business that collects data should carry this coverage. It's especially important if your security company stores sensitive information, such as electronic surveillance data from your clients' home or businesses.

Insurance carriers sometimes offer a discount on your cyber policy if you take steps to avoid a breach. Recommended practices include regular backups, the use of multi-factor authentication (MFA), and employee training.