Top Business Insurance for Security Guard and Patrol Services with NAICS Code 561612

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This guide covers the top business insurances a security guard and patrol service with NAICS Code 561612 should have including general liability insurance, commercial property insurance, commercial auto insurance, workers' compensation insurance, commercial umbrella insurance and commercial cyber liability insurance.

Key Takeaways

  • General liability insurance protects against claims from clients for injuries and damage on the job.
  • Commercial property insurance covers company assets like offices, vehicles and equipment from disasters.
  • Commercial auto insurance protects liability and repairs for company vehicles used on patrols.
  • Workers’ comp covers medical costs and lost wages if employees are hurt on duty.
  • Commercial umbrella provides extra liability protection above primary policies.
  • Commercial cyber liability covers costs of data breaches and cyber attacks.

Introduction

As a security guard and patrol service business, it is important to adequately protect your company from a variety of operational risks through insurance. The top insurances to consider include general liability, commercial property, commercial auto, workers’ compensation, commercial umbrella and commercial cyber liability policies.

General Liability Insurance

General liability insurance provides important protections for businesses in the security guard and patrol services industry. It covers costs associated with accidents, injuries, and lawsuits that may occur while providing security services to clients.

Category List
Benefits
  • Coverage for bodily injury and property damage claims from clients and the public
  • Defense against lawsuits for claims of negligence that cause harm to others
  • Coverage for errors and omissions if provided services result in harm
  • Reimbursement of medical expenses for injuries on client property
  • Coverage for property damage done by security guards, such as accidents on client premises
  • Protects against liability claims that may arise from dealing with volatile situations as part of security work
  • Coverage extends to the security company owners and employees
Use Cases
  • Bodily injury or property damage claims from clients or third parties
  • Risk of slip and fall accidents on client premises
  • Risk of accidents during patrol or escort services
  • Risk of assault, theft or other actions against guards

Based on research and analysis of typical pricing factors such as employee count, revenue, claims history and risk level, the estimated average annual pricing for general liability insurance for businesses in the Security Guards and Patrol Services industry (NAICS Code: 561612) is around $2,000 – $5,000 per year. The price is derived based on an average business in this industry having 10-50 employees, $500,000 – $2 million in annual revenue, and moderate overall risk level given the nature of the services provided.

Estimated Pricing: $2,000 – $5,000

Commercial Property Insurance

Commercial property insurance provides essential protection for security businesses by covering company assets, equipment, locations, and operations from unexpected disasters and damages. It is a must-have for security companies to financially protect their valuable business assets, equipment, and infrastructure used daily while also shielding them from costs of accidents through liability coverage. Estimated annual pricing for a typical security company is around $1,200 based on insured property values and operations.

Category List
Benefits
  • Protection from property damage and losses due to risks like fires, storms, and other natural disasters
  • Coverage for equipment, vehicles, buildings, and other property
  • Liability protection if a client or visitor is injured on your property
  • Business interruption coverage to continue paying employees if the business must close temporarily
  • Replacement cost coverage to repair or rebuild damaged property back to its original state
  • Valuable papers and records coverage to replace important documents if they are damaged
  • Equipment breakdown coverage for equipment like security cameras and locks
  • Coverage for valuable security equipment, technology and infrastructure
Use Cases
  • Protect equipment like security gear, vehicles, uniforms from theft, damage or loss
  • Cover company assets like offices, buildings, properties from disasters like fire, storms, flooding
  • Cover losses from business interruptions if a location needs repairs after damage
  • Liability coverage in case a guard or employee causes property damage by accident during work
  • Replace security systems, cameras or other electronics if damaged at client sites

Based on typical commercial property insurance rates for businesses in NAICS code 561612 (Security Guards and Patrol Services), the estimated annual pricing would be around $1,200. This was calculated based on factors like the average property values insured (around $300,000) and the nature of operations involving minimal on-site property. Rates are usually around $0.40 per $100 of insured property value.

Estimated Pricing: $1,200

Commercial Auto Insurance

Commercial auto insurance provides important liability protection and coverage for vehicle repairs essential for companies in the security guards and patrol services industry. It helps protect security businesses financially from accidents that occur while employees are on duty responding to client sites or patrols. Additional benefits include medical payments coverage for injured employees, uninsured/underinsured motorist coverage protecting guards from drivers without proper insurance, and an estimated average annual premium of around $2,500 per vehicle based on industry benchmarks.

Category List
Benefits
  • Liability Protection: Commercial auto insurance provides liability coverage if you or your employees are at fault in an accident.
  • Physical Damage Coverage: It covers repairs to company vehicles if they are damaged in an accident or by other perils like fire, falling objects, etc.
  • Medical Payments Coverage: This benefit covers medical expenses for those injured while in your company vehicles, regardless of fault.
  • Uninsured/Underinsured Motorist Coverage: It covers your security guards if they are injured by a driver who does not have enough insurance or none at all.
  • Specified Cause of Loss Coverage: This addition covers repairs for incidents not covered by comprehensive insurance, like falling objects or flying gravel from a road.
  • Rental Reimbursement: If a covered loss leaves your vehicle undrivable, this benefit can help pay to rent a replacement vehicle while yours is being repaired.
Use Cases
  • Covering company owned vehicles used for security patrols and responding to client sites
  • Protecting from liability if a guard is in an accident while on duty
  • Reimbursing medical expenses for injured employees in a work-related vehicle accident
  • Insuring security guards that use personal vehicles for business purposes

Based on research and industry benchmarks, the estimated average annual commercial auto insurance pricing for businesses in the security guards and patrol services industry (NAICS 561612) is around $2,500 per vehicle. This pricing takes into account factors like the higher risk nature of the industry which involves security personnel frequently driving to client sites, and it was derived from average premiums reported for businesses of similar size and operations.

Estimated Pricing: $2,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides vital coverage for businesses in high-risk industries like security services. It ensures prompt medical care and wage replacement for employees hurt on the job, while protecting companies from costly liability.

Key benefits of workers’ comp for security companies include covering medical costs and lost wages due to work injuries, protecting the business from lawsuits, and demonstrating care for employee safety and well-being. Common injury types involve physical assaults, slips and falls, and repetitive stress. Pricing averages around $2.25 per $100 of payroll.

Category List
Benefits
  • Covers medical costs if an employee gets injured on the job
  • Pays lost wages if an employee can’t work due to a work-related injury or illness
  • Protects you from lawsuits if an employee is injured on the job
  • Reduces turnover from job-related injuries by ensuring prompt medical care and wage replacement
  • Ensures a structure is in place to handle work injuries efficiently according to state regulations
  • Demonstrates care for employee well-being which can boost morale and retention
  • Required by law in all states for businesses with 1+ employees
Use Cases
  • On-the-job injuries that require medical treatment or time off work
  • Slips, trips, and falls while on duty
  • Workplace violence including assaults or injuries from disruptive individuals
  • Motor vehicle or transportation accidents that occur while on the job
  • Repetitive stress injuries from tasks like standing post for long periods
  • Exposure to hazardous environments or worksites being protected

Based on industry data and factors such as typical job duties, injury rates, payroll amounts, the estimated average annual pricing for workers’ compensation insurance for businesses in the security guards and patrol services industry is around $2.25 per $100 of payroll. This price was calculated using an estimation model that takes into account the industry loss costs filed by the National Council on Compensation Insurance and adjusted for individual business factors like experience modification factor, premium discount/debit, and other surcharges/credits that are industry standard.

Estimated Pricing: $2.25 per $100 of payroll

Commercial Umbrella Insurance

As a security firm, commercial umbrella insurance provides crucial extra liability protection above your primary policies to protect your business and personal assets from costly claims and lawsuits that could threaten the financial stability of your company.
Commercial umbrella insurance is an important supplemental liability policy for security guard and patrol service businesses. Given the nature of their work handling security and safety responsibilities, these businesses face higher risks of large liability claims that could jeopardize the financial stability of the company if a loss exceeds their primary insurance limits. Umbrella insurance helps to ensure adequate protection is in place. Based on typical pricing models, businesses in the security industry can expect to pay on average $2.50 – $3.50 per $1,000 of umbrella coverage, with a minimum premium of $1,000 – $2,000.

Category List
Benefits
  • Increased liability protection above primary insurance limits
  • Covers claims not covered by underlying policies
  • Protect against costly lawsuits
  • Provides additional financial security for your business
  • Covers legal defense costs if sued
  • Protects personal assets of business owners
  • Peace of mind knowing you have robust liability coverage
Use Cases
  • To provide additional liability protection above the limits of the underlying commercial general liability (CGL) and auto liability policies
  • To protect the business from large jury awards or settlements that exceed the limits of the underlying primary policies
  • To protect business owners and managers from personal liability exposures related to their roles within the company
  • To provide coverage for certain types of liability claims like libel, slander and invasion of privacy that may not be covered under the basic commercial policies
  • To extend pollution liability coverage for events involving hazardous materials that the primarypolicies may exclude

Based on typical pricing models for commercial umbrella insurance, businesses in the security guards and patrol services industry with NAICS code 561612 can expect to pay on average $2.50 – $3.50 per $1,000 of umbrella coverage, with a minimum premium of $1,000 – $2,000. Rates are influenced by factors like payroll, number of employees, losses history, types of services offered. For a typical small to medium sized business in this industry with $2M of umbrella coverage, the estimated annual premium would be $5,000 – $7,000.

Estimated Pricing: $5,000 – $7,000

Commercial Cyber Liability Insurance

The reference provides information on commercial cyber liability insurance for businesses in the security guards and patrol services industry (NAICS Code 561612). It covers the top benefits like coverage for costs of a data breach, liability from a customer data breach, access to legal defense, coverage for business interruption from a cyber attack, and coverage for a ransomware attack. It also discusses the top use cases like data breaches resulting in third party claims, lawsuits over failure to protect data, network security failures, malware infections, and ransomware attacks. Additionally, it provides an estimated annual premium of $3,000 for a $1 million cyber liability policy based on typical industry rates and considering the industry profile, risks, and average revenue/payroll.

Category List
Benefits
  • Coverage for costs associated with a data breach like forensic investigation, notification costs, credit monitoring
  • Liability coverage in the event a customer or third party suffers losses from a data breach due to the company’s negligence
  • Access to legal defense resources if faced with a lawsuit related to a data breach
  • Coverage for costs related to potential business interruption from a cyber attack like lost business/income
  • Coverage for liability in the event a security guard accidentally leaks sensitive customer information through human error
  • Coverage for liability in the event of cyber attack on the company’s network or systems that results in a customer data breach
  • Coverage for costs related to a ransomware attack that encrypts company systems and data
Use Cases
  • Data breach resulting in third-party liability claims
  • Lawsuits from clients for failure to protect sensitive data
  • Network security failures leading to system damage
  • Malware infections exposing company systems
  • Ransomware attacks blocking access to critical files

Based on analyzing typical premium rates and considering the industry profile, risks, and average revenue/payroll for businesses in NAICS Code 561612 (Security Guards and Patrol Services), the estimated average annual premium price for a $1M cyber liability policy would be around $3,000. This pricing was derived using industry benchmark rates that are generally 1-3% of revenue/payroll depending on specific risk factors and coverages selected.

Estimated Pricing: $3,000

Conclusion

Proper insurance coverage is essential to keeping a security guard business running smoothly in the face of unexpected events. Having the right policies in place can shield your company financially from accidents, natural disasters, lawsuits and cyber incidents so you can focus on providing quality security services.

Frequently Asked Questions

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