Through a combination of first and third-party policies, security guard insurance helps protect against financial losses for your business. When you combine the different policies needed, like general liability and commercial property, they form what is called security guard insurance, and the estimated total minimum premium for all core policies can start at $7,300 annually.
When looking for an insurer, it is important to find one that has high limits and can offer the policies your business needs. GuardPro can help find the right package for security services, which have appropriate limits and the core coverages you need.
Security Business Insurance Costs
Being a security guard can be a risky career. As a business owner, the risk means the premium for insurance for security companies can be expensive.
Insurance Type | Coverage Amount | Deductible | Low-risk Premium |
|---|---|---|---|
General Liability | $1 million to $2 million per occurrence, $2 million to $3 million aggregate | None | $2,750 to $3,500 |
Professional Liability | $1 million to $2 million per occurrence, $2 million to $3 million aggregate | $1,000 per occurrence | $2,500 to $3,000 |
Commercial Property | $20,000 | $500 | $550 to $800 |
Commercial Auto | $500,000 combined single limit | none | $1,500 to $2,000 |
Workers’ compensation and general liability premiums are calculated using several factors that include your industry, claims history, and the number of employees, so the price can vary significantly even within the same industry. To learn more, read our related resources:
These are low-risk premium estimates, meaning security companies that patrol a standard commercial building. Expect premiums to increase dramatically for higher-risk work like at bars, nightclubs, and other high-risk industries. For example, per GuardPro, the minimum premium for policies in that industry usually starts at $20,000.
Factors that insurers will consider when determining your premium include:
- Where do you provide security: a concert, a bank, a stadium, or a school?
- Do you provide emergency response services?
- Does your firm participate in bail bond recovery or bodyguard services?
- Does your business have a fleet of vehicles for patrol?
- Do you offer armed services, and if so, what types of firearms training are required?
- Does your firm offer any bodyguard services?
Types of Insurance for Security Companies
Security guard insurance covers private security companies and sole proprietors through a variety of insurance policies, including general liability, professional liability, business property, and workers’ compensation. While a security guard is protecting property against fire, theft, and vandalism, the first-party coverage is doing the same thing. Liability protects your business by handling claims of bodily injury and property damage from third parties and accusations of professional mistakes.
Type of Insurance | What it Covers |
|---|---|
General Liability | Bodily injury or property damage claims by third parties |
Professional Liability | Liability coverage for services and advice offered over the course of your operations |
Commercial Property | Business-owned property and equipment |
Commercial Auto | First and third-party coverage for your auto and other people’s property or injuries. |
Workers’ Compensation | Employees who become injured or ill as a result of their jobs |
Cyber Liability | Costs from cyberattacks and data breaches |
General liability insurance for security companies, sometimes referred to as slip and fall insurance, covers accidents and injuries to third parties. It is a core policy for nearly every industry and offers protection if, as a result of your negligence, someone is injured, has property damaged, or accuses you of reputational harm.
This need isn’t as apparent with a security guard company that doesn’t have a location and is constantly mobile—but the risk does exist. For example, a security guard coming around a corner quickly in response to a situation might run into an innocent bystander, accidentally knocking them down and injuring them.
There are important insurance endorsements that may apply to your type of business. These include armed assault and battery, firearm insurance, and client property endorsement for if your firm handles client property.
This coverage is often included in the general liability policy offered to security guard companies, but if not, then you should consider purchasing it. It protects your business from claims that a guard didn’t execute job functions professionally, leading to potential injury or death. A common example of this type of loss is when a security guard fails to follow protocol, like seeing to it that all doors are locked, resulting in a loss.
All equipment owned by the security company—including furniture, computers, and monitoring equipment—are part of the business’ property. Commercial property insurance helps your business if a fire damages your equipment.
Commercial property can be available as a standalone policy but is often bundled with general liability into a business owner’s policy (BOP). If you try to get a quote for general liability and property and instead a provider gives you a quote for a BOP, that is why.
Another security guard insurance coverage to consider is commercial auto insurance. If your business owns any type of vehicle, whether it is for patrol or delivery of secured goods, then you’ll need commercial auto—and it is most likely required in your state.
This policy covers both the liability incurred if a company vehicle causes an accident and damage to the vehicle itself. It also repairs or replaces the vehicle if lost, damaged, or stolen. Items in the vehicle are also covered by commercial property.
Many security companies have vehicles used to patrol a property, and they are usually customized with branded wraps, sirens, lights, and safety features. Safety features might include bulletproof glass, backseat partitions, and installed computer systems for monitoring. These add-ons make insurance for security vehicles more expensive.
Nearly every state requires workers’ compensation insurance if you have at least one employee. So unless your business is a solo operation, odds are you will need to at least look into whether this is required in your state. This coverage helps an employee who is injured or becomes ill as a result of their job by paying medical costs and providing wage replacement. The injuries can be directly related or incidental to the job.
Another important security company insurance policy to look into is cyber liability insurance. This provides financial protection and data restoration for companies that experience a data breach—and every small business is susceptible to a cyberattack. Security guard companies often have a database of client information that, in the wrong hands, could lead to a large financial loss.
Top Companies Offering Insurance for a Security Company
- GuardPro: Best overall for security guard insurance
- Next Insurance: Best for ways to save
- AMIS: Best for armored cars
- The Hartford: Best for workers’ compensation
- Hiscox: Best for security services
- Tivly: Best for finding coverage quickly
GuardPro: Best Overall for Security Guard Insurance
When you are looking for insurance for your security company, you can’t go wrong with a specialty broker who specializes in it, like GuardPro. For more than 20 years, it has been focused on providing security guard companies insurance. Whether you are a startup or an established company, it has a policy for you.
If you have a claim, however, another company will be handling this, as GuardPro is a broker. An alternative would be Next Insurance, which handles claims in-house and tries to have resolution on claims within 48 hours of the claim being filed.
GuardPro is not rated by the financial rating organization AM Best since it is a brokerage. However, all of the carriers it works with are rated A (Excellent) or higher, so you can trust the financial stability of the carrier from whom you purchase the policy.
To obtain a quote, simply fill out an application and submit it online. Within 24 to 72 hours, a representative will reach out to you with a quote.
GuardPro offers general liability, workers’ compensation, business auto, umbrella, and bonding. It can also help you provide group health and 401(k) benefits for your employees.
When helping you determine your coverage, it will factor in things, such as are your guards armed or unarmed and where and how many locations you patrol.
GuardPro is available in all 50 states. Once you purchase a policy, you will have access to an online account where you can manage your policy. One benefit of this is that you can request and receive a certificate of liability (COI) instantly.
The broker is a convenient choice for new security guard companies. Because most providers factor past revenue and claim history into their premium calculation, it can be difficult for startups to find insurance. GuardPro has a special application for new security companies.
It is a part of Venture Pacific Insurance Services, but as neither is a carrier, there are no details on complaints filed with the National Association of Insurance Commissioners (NAIC).
Next Insurance: Best for Waves to Save
Next Insurance is a newer provider that offers insurance for a security company, private detective, or security guards. It makes our roundup because it offers savings in several ways. The first is it is a direct-to-consumer provider, meaning that it bypasses agents and brokers and sells insurance directly to consumers online. Whether you realize it or not, not every provider that has online quotes is selling directly to you; sometimes, the entire quoting system was developed and is maintained by an agency.
This carrier also offers savings up to 25% when you bundle coverage. Finally, it has helpfully assembled three levels of coverage for security guard insurance—and each comes with the same coverage but at different levels and cost, giving you an option to pick one that fits. You can learn more about the provider through our in-depth review of Next Insurance.
In terms of its financial rating, it is in a good position to handle claims. Next Insurance’s AM Best rating is an A- (Excellent). Its offering for security guards is good for a lot of companies, but it is not as robust as GuardPro, which offers more levels of protection.
You can get a quote and purchase a policy online. The entire process takes approximately 10 minutes. For this article, we were unable to obtain a quote. However, according to Next Insurance, the average cost its customers pay for general liability is $11 monthly or $132 annually.
Its insurance package for security guards comes with general liability, commercial property, and workers’ compensation. The three levels of insurance for security companies are:
- Basic has general liability with $500,000 per occurrence, workers’ comp with $85,000 per accident, and $25,000 per commercial property.
- Pro has general liability with $1 million per occurrence, workers’ comp with $100,000 per accident, and $25,000 per commercial property.
- Pro Plus has general liability with $1 million per occurrence, workers’ comp with $100,000 per accident, and $25,000 per commercial property.
Next Insurance has more than 500,000 policyholders who, per multiple sources, are happy with their experience. It has lower-than-expected complaints through the NAIC. On its website[1], it publishes customer reviews and has more than 5,000 reviews with an average rating of 4.5 out of 5.
Security guard insurance is available nationwide. Online, you can manage your account and file a claim. It also has an app that you can use to manage your policy and share proof of insurance.
Get a quote from Next Insurance
AMIS: Best for Armored Cars
Alliance Marketing & Insurance Services (AMIS) is another specialty broker in the security guard space. It specializes in the niche space of armored car insurance, offering higher limits than other carriers with general and professional liability limits of up to $5 million.
One of the companies AMIS works with for armored car insurance is Great American Insurance Group (GAIG). AM Best has rated GAIG an A+ (Superior). The advantage of this broker is it offers a highly specialized type of private security company insurance. If you have more needs than armored car insurance, GuardPro is a good place to start.
There are two options for a quote: you can apply online for a “quick quote” or fill out a PDF application and then fax it to AMIS. If you do the former, you can select the priority level of this quote to help AMIS know if it needs to respond very quickly to your request.
Armored cars require specialized coverage. AMIS offers an armored car fidelity & crime policy with tailored coverage, including a $10,000 pollution cleanup if your vehicle spills gas, oil, or some other pollutant because of attempted theft. Temporary employees are included in the definition of an employee, and there is coverage for items lost or damaged that are in a locked safe or vault if the damage results from an attempted or actual theft.
AMIS provides quotes for all 50 states. The armored car insurance is through the Great American Insurance Group, which has an average level of complaints filed with the NAIC.
The policy is flexible and can be tailored to your business. Small, one-employee operations or very large firms can find insurance through AMIS.
Customers have access to an online client center where they can file a claim, request a COI, and ask for policy changes. Outside of the online portal, AMIS is open Monday through Friday 8:30 a.m. to 5 p.m. Pacific time.
The Hartford: Best for Workers’ Compensation
Every state except Texas and South Dakota requires businesses to carry workers’ compensation insurance. It should be no surprise that The Hartford, as the best small business insurer, has a great workers’ compensation product for security guard companies. It offers a specialized return-to-work program for injured employees, 24/7 customer service, and transitional services for injured employees.
It is one of the oldest insurance companies in America, and The Hartford’s AM Best rating is A+ (Superior). Our review of The Hartford can help you determine if the provider fits the bill.
If your firm is looking for an insurer that can offer more or other types of coverage, then check out Tivly or GuardPro. Either is a helpful way to get started when you need multiple types of security insurance.
For a quote, you will need to contact an independent agent who works with The Hartford. While costs vary, it states that customers with less than $300,000 in payroll pay, on average, will pay $70 a month.
It has developed several programs to help injured employees, including a preferred medical provider network with over 65,000 pharmacies that will usually fill prescriptions with no out-of-pocket expense.
There are nurse case managers available to work with any injured staff. They help you, as well as the employee, coordinate health care and treatment.
The Hartford offers workers’ comp in every state except Hawaii and Alaska and any state with a state-run program. It has these convenient billing options:
- Payroll billing, where the premium payment is timed to the company’s payroll schedule; this benefit does not cost anything extra
- Pay-as-you-go billing, where the premium is based on real-time payroll numbers; this option eliminates the need for a large premium downpayment and avoids lessening any surprises during an audit
The Hartford also offers 24/7 customer and claims service, an online account to manage your policy, and the ability to get an instant COI.
Hiscox: Best for Security Services
Small businesses insurer Hiscox provides coverage for over 180 different professions—including security services. It offers coverage for all types of businesses, including security armed guards, security firms that employ guard dogs, and businesses that install security monitoring services for businesses or homes.
The provider has been offering insurance since 1901 and has maintained a healthy financial position. AM Best’s rating of Hiscox is A (Excellent). You can decide if it’s the best option for your business by reading our review of Hiscox.
While it is a good option for insurance for a security company, some of its offerings and services are more limited than others: it has no 24/7 call center for claims and no commercial auto insurance offerings. If you need commercial auto, you should check with AMIS or Next Insurance.
Also, since private security companies often patrol during the nights and weekends, having 24/7 availability may be important. In this case, you’ll want to consider The Hartford for your security guard insurance coverage.
We received a quote for a security system installation company at $2,038 annually—$509.40 as a down payment and then 10 payments of $152.86.
The quote was for general liability with a total limit of $300,000, and this is a basic liability policy. It also included a quote for cyber liability insurance with a total limit of $250,000 and a deductible of $10,000. The cyber insurance included breach response, lost revenue, and data recovery costs.
Hiscox is the only provider on this list that provides any form of an option to get a quote and purchase a policy online.
If you need to obtain a COI and make changes to your policy, such as obtaining documents, changing addresses, and requesting a loss run, you can do so online. For changes to the actual coverage, you will need to call Hiscox. It is Monday through Friday 7 a.m. to 10 p.m. Eastern time.
Complaints with the NAIC for Hiscox are slightly higher than the national average.
Tivly: Best for Finding Coverage Quickly
Tivly is an experienced service that helps small businesses find the right carrier for their needs. Because security guard insurance is a high risk, it can be hard to find a carrier that has the appetite for your business. With over 200 providers in its network, it does that for you by matching you with a provider that fits your security company.
Tivly works with top-rated carriers, such as Liberty Mutual and Progressive. Liberty Mutual’s AM Best rating is A (Excellent), while Progressive’s AM Best rating is A+ (Superior).
While Tivly does not offer online quotes, the process begins online. Answer a few short questions and, in a matter of minutes, a representative from Tivly will call you. It will then review your business needs more in-depth
Some of the security guard professions it works with are door attendants, bodyguards, armed and unarmed security guards, and patrol agencies.
Professional liability, general liability, business auto, and workers’ compensation are some of the coverages Tivly can help you find a provider for.
As a two-sided marketplace, Tivly truly matches you with the provider. It is a convenient and fast process. After you purchase the policy, the services available will be dependent on the provider you choose to go with.
This service is free, and it can provide a quote in minutes.
How We Determined the Best Security Guard Insurance Companies
When evaluating the best insurance for a security company, we used our own in-house proprietary evaluation system. In our evaluation, we focused on the customer’s needs, paying particular interest to convenience, financial ratings (AM Best), customer service, types of policies offered, and the overall experience as a policyholder for a specific provider.
Frequently Asked Questions (FAQs)
No, it doesn’t, so security guard companies should consider purchasing pet “work dog” insurance to cover injuries to animals at work. Security dogs are considered property, and injuries on the job are not covered by workers’ compensation.
A security guard with equipment not provided by the security company or employer should obtain a floater policy that covers their employment use. The liability of use is covered by the employer’s policy during work, but if the firearm is lost, the floater policy covers that. Some carriers offer optional riders for business owners.
If you are working at a nightclub or bar, you’ll want to consider assault and battery coverage. Many policies exclude coverage for this type of incident but then give it back in the form of an endorsement. Another coverage is lost key liability coverage. If your firm is in business after hours and has keys, check with your provider to see if this is included in the general liability or if it is available as extra coverage.
Bottom Line
Insurance for security companies is a combination of policies that protect your business from financial losses, giving you the freedom to focus on protecting others. Security guard insurance offers protection from injuries, property damage, and financial loss. If you’re looking for insurance for a security company, then GuardPro is the best overall provider of security guard insurance and can help new and established companies get the right coverage.
