Coverage
Professional Liability Insurance for Security Companies
Protection against claims of negligent security services, failure to protect, and errors in your professional duties.
Professional liability insurance, also known as errors and omissions coverage, protects security companies against claims that their services were inadequate, negligent, or failed to meet contractual obligations. When a client alleges that your guards failed to prevent a theft, missed a critical alarm, or that your company hired an unqualified officer, professional liability responds with legal defense and pays covered damages.
What It Covers
Professional liability for security companies covers claims arising from errors, omissions, or negligent acts in the performance of your security services. This includes allegations that your guards failed to detect or respond to a threat, that your monitoring services missed a critical alarm, or that your security assessments were flawed.
Negligent hiring and supervision claims are a significant exposure for security firms. If a guard with an undisclosed criminal history or inadequate training causes harm, your company can be held liable for the decision to employ that individual.
The policy also responds to breach of contract claims related to the quality of your services. If a client alleges that your guards did not perform the duties specified in the service agreement, professional liability provides coverage.
Who Needs It
Any company that provides security guard services, executive protection, alarm monitoring, security consulting, or investigative services should carry professional liability insurance. The risk of a negligence claim exists in every security engagement, regardless of how well-trained your officers are.
Clients that suffer losses on your watch will look to your company for compensation. A retail store that experiences a shoplifting spree, a warehouse that suffers a break-in, or an event venue where an attendee is assaulted will all question whether your security services met the standard of care.
Why It Matters
Negligent security lawsuits are among the most costly claims in the security industry. When a crime occurs at a property your company is contracted to protect, the victim may sue your firm alleging that better security measures could have prevented the incident. Jury verdicts in negligent security cases routinely exceed $1,000,000, and cases involving serious injury or death can produce multi-million-dollar awards.
Professional liability provides the legal defense and financial protection your company needs to survive these claims. Without it, a single negligent security lawsuit could consume your operating capital and force you to close.
Key Coverage Features
- ●Defense costs for negligent security lawsuits and failure-to-protect claims
- ●Coverage for negligent hiring, training, and supervision allegations
- ●Breach of contract claims related to security service quality
- ●Failure to respond to alarms or security breaches
- ●Errors in security risk assessments and consulting recommendations
- ●Coverage for claims arising from inadequate background checks on guards
- ●Coverage for incidents occurring after your retroactive date, when the claim is first made during the policy period