Insurance and Liability Coverage

When hiring a security guard company, one of the most often overlooked factors to evaluate is their insurance and liability coverage. Security work involves inherent risks, and without proper insurance, your business could be held financially responsible for incidents such as personal injuries, property damage, negligence, or even use-of-force claims. Ensuring the security provider carries comprehensive and adequate coverage is essential to protecting your organization from legal and financial exposure.

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General Liability Insurance

At a minimum, the security company should carry general liability insurance. This policy covers damages or injuries caused by the actions, or inactions of the company’s employees while on duty. For example, if a guard accidentally injures a bystander during an altercation, or if they damage property while responding to an incident, general liability insurance covers legal fees, settlements, or medical costs.

Ask for proof of insurance and ensure that:

• The standard coverage limits are typically $1 million per occurrence and $2 million aggregate.
• The policy specifically includes security operations, not just general business activities.

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Workers’ Compensation Insurance

Security guards can be injured while performing their duties, especially in high-risk environments. Workers’ compensation insurance ensures that if a guard is injured on your property, the security company—not your business—is responsible for covering their medical expenses and lost wages. Without this coverage, injured employees might pursue claims against the property owner or client company.

Verify that the security provider maintains an active workers’ compensation policy that meets state requirements, especially if guards will be working on-site at your facilities.

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Professional Liability (Errors & Omissions) Insurance

This lesser-known but crucial policy protects against claims of negligence, failure to perform duties, or errors in judgment, such as false arrest. In the security industry, this could involve a guard failing to respond appropriately to a threat, or mishandling a confrontation that leads to injury or property loss or perhaps mistakenly arresting the wrong person.

Professional liability (also known as Errors & Omissions insurance) is particularly important if the guards are tasked with responsibilities beyond physical presence—such as monitoring surveillance systems, managing access control, or working in sensitive environments.

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Automobile Liability Insurance

If the security company uses vehicles for patrols or transportation, they should carry commercial auto insurance. This policy covers accidents involving company-owned vehicles or guards driving on duty. Even if vehicles are not a core part of the service, coverage is essential if guards ever need to respond off-site or transport people or materials.

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Claims History and Transparency

Another crucial factor when evaluating a security provider is their claims history and willingness to be transparent about past incidents. A reputable company should have a track record of responsible risk management and minimal insurance claims. Too many past claims could indicate poor training, negligent hiring, or lack of oversight.

Ask the company for:

• A summary of any major claims or lawsuits filed against them in recent years
• How those situations were handled
• What changes they made to prevent recurrence

This insight not only reflects their commitment to accountability but also gives you confidence in their ability to protect your assets without becoming a liability themselves.

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In high-risk fields like private security, proper insurance coverage is not optional, it’s a necessity. A reliable, professional security guard company will carry comprehensive general liability, workers’ compensation, professional liability, and auto coverage, and will provide documentation to prove it. Reviewing a company’s claims history and risk management practices also ensures you’re working with a provider that values safety, accountability, and long-term partnership.