Insurance for Loss Prevention Companies

Loss Prevention Risks

Shoplifter detention is the highest-frequency claim generator in loss prevention. False arrest, wrongful detention, excessive force during apprehension, and racial profiling allegations arise regularly. Even when a detention is legally justified, the detained individual may file a claim.

Internal theft investigations create employment-related exposures. Accusing an employee of theft based on insufficient evidence, conducting improper interviews, or violating employee rights during investigations produces employment practices and defamation claims.

Coverage We Recommend

• ●Assault and battery for shoplifter detention and apprehension incidents
• ●General liability with strong personal injury coverage for false arrest and detention
• ●Professional liability for investigation errors and wrongful accusations
• ●Employment practices liability for internal theft investigation claims
• ●Surveillance data liability for CCTV and POS monitoring systems
• ●Workers' compensation for loss prevention agents in retail environments

Retail Client Requirements

Major retailers impose strict insurance requirements on loss prevention contractors. Most require $2,000,000 or more in general liability, specific false arrest and detention coverage, and additional insured status. Big-box retailers and national chains may require $5,000,000 umbrella limits.

We help loss prevention companies build programs that satisfy the insurance requirements of major retail clients while keeping premiums competitive through proper classification and claims management.