Security Business Coverage

How to Figure Out What Your Security Business Coverage Should Include

How to Figure Out What Your Security Business Coverage Should Include

Choosing insurance limits for a business with stable industry minimums and well-known norms is already difficult. But if you own a security guard business, whether you protect individual clients, property, or moving cargo, it can be much more difficult to accurately judge the best limits. Here’s what you should ask before finalizing a number:

  • What happens if you current limits aren’t enough? Physical damage coverage for business property and tools is important for keeping a business running, but not having enough just means figuring out how to keep going until you have enough revenue to replace or repair your loss. Not having enough liability coverage if there is a third-party claim of assault and battery has another set of potential ramifications. If you have a limited amount of money available for monthly insurance premiums, cover the most costly, rather than just the most likely, incidents.
  • Is your business too spread out? While offering a fuller range of services than a competitor is good for business, different security jobs come with different liabilities. If you have security consultants only, for example, you have fewer risks of rented property claims or accusations of abuse and molestation. Some jobs may also require arms or particular equipment. If you are just starting a security business but don’t have the capital to account for likely risks, consider narrowing your business model.

Many small businesses may be new to the world of commercial insurance or how risky their business is. Make sure you know your options for your business, and, if you need excess coverage, go to Evolution Insurance Brokers to make that option available.


Rick J. Lindsey
Rick Lindsey

President, CEO and Chairman