How much does insurance cost for a security company?

For security companies, the cost of workers’ compensation insurance depends on how many employees you have and their occupational risks.

This policy covers medical expenses related to employee injuries and occupational diseases, such as a doorman who gets their fingers caught in a revolving door while assisting a resident. It also provides disability benefits while an employee is disabled or temporarily unable to work.

Most workers' comp policies include employer's liability insurance to protect against lawsuits from injured workers, though they give up their right to sue once they accept benefits.

Security guard businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, businesses in California and New York must carry workers' comp if they have one or more full-time or part-time employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for sole proprietors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, but mostly it comes down to the risk of an injury in your workforce. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Commercial auto insurance for security guards varies in price depending on the number and value of your company vehicles, among other factors. For instance, a security company with a fleet of patrol cars will pay more for insurance than a private security guard who drives their own car to jobsites.

This policy helps pay for legal fees, medical treatment, and repairs if your vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

Other factors that affect the cost of commercial auto insurance include your policy limits, the coverage options you choose, any additional insured endorsements, how the vehicles are used, and the driving records of anyone at your security business who is permitted to drive them.

Opting out of coverage you don't need, such as comprehensive auto insurance, will result in a lower premium.

The cost of professional liability insurance primarily depends on the type of security guard services you provide and how many clients you have. This policy is sometimes referred to as errors and omissions insurance (E&O).

Professional liability insurance covers financial losses related to professional negligence or failure to provide services that meet the standard of care for the security industry.

For instance, if a surveillance company failed to notice a burglary at a business they were meant to be protecting, their professional liability policy would pay for the resulting lawsuit, including attorney's fees and a settlement or judgment. It would also cover legal costs if a security guard missed their shift when a crime occurred, or if they were sued for false arrest.

Professional liability insurance costs depend on several factors, such as whether you provide patrol vehicles, video surveillance, retail security, or bodyguards.

Factors like your claims history and the size of your business will also affect the cost. As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with clients and thorough documentation of all incidents and agreements.

The cost of cyber insurance depends on the amount of sensitive information your security business handles. This policy is also called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps your small business recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.

A cyber insurance policy is especially crucial for security companies that store personal information, such as credit card numbers, phone numbers, and email addresses belonging to their clients.

The cost of cyber insurance and the amount of coverage you need depend on how much personal data your business handles, along with any cybersecurity measures you implement to reduce your risks.