SWG: Secure - Positive Industry Outlook Calls for Coverage

June 29, 2021

Security companies provide private security guards, patrol vehicles, as well as additional services such as alarm systems, cybersecurity, background checks, investigation, risk analysis, and security consulting. Security companies often offer more than just basic security guards, including specially-trained security guards equipped with first aid, CPR, fire watch, and alarm response, as well as other security services, including surveillance devices, patrols, and more.

Industry Growth Expected to Be Steady

According to IBISWorld, revenue for Canada's Security Services industry is expected to reach $5.9bn by 2021. (1) Security Services have outpaced other vital sectors in the Administration, Business Support & Waste Management Services industry, despite growing at a slower rate than the overall economy.

This industry has a positive outlook due both to actual and perceived increases in crime, as both lead to upgrades to security systems and services. Regardless of whether this fear is realized, a rise in perceived crime will increase the demand for security services. (1)

Security Services Require Specialized Coverage

Security partnerships and corporations must carry at least $1 million in liability insurance, though some require a higher limit.

While most security companies are required to carry general liability, the standard commercial general liability policy represents the bare minimum of coverage. It won’t meet the needs of most security companies. For one thing, the standard CGL policy doesn’t include professional liability.

Also, it contains a number of exclusions that leave worrisome gaps in coverage pertaining to the insured’s property, employees, and clients. For example, a general liability policy might omit personal injury coverage for false arrests, invasion of privacy and/or discrimination.

What Type of Insurance do Security Companies Need?

Specialized coverage for security service firms provides protection in four key areas:

Commercial General Liability: Covers bodily injury to employees or clients on the insured’s premises.

Cyber Liability: Covers damage to electronic data on the insured’s servers.

Errors & Omissions: Protects the insured from errors and mistakes in their service.

Legal Expense: Provides coverage for legal fees should the insured need to battle a lawsuit.

SWG SECURE Security Services Insurance

SWG SECURE Security Services Insurance provides coverage not normally offered by traditional insurers. Businesses that provide security guard services, private investigators, alarm systems, and locksmiths as well as others requiring entry to private living quarters, need a unique type of protection.

Our program takes into account all factors relevant to your client’s situation, helping to avoid unpleasant surprises down the road. You can trust us to evaluate the complete risk picture. We offer coverage for all potential exposures, including failure to perform, design errors and omissions, bodily injury, advertising liability, legal expenses, property damage, and a host of other circumstances.

You may have turned down this type of high-risk client in the past, but with South Western Group’s support, you can provide a wide range of coverage options at fair and competitive prices.

Coverage Highlights:

Commercial General Liability (Occurrence Form):

Failure to Perform

No General Aggregate Limit

Contractors Errors & Omissions

Bodily Injury and Property Damage – Broad Form

Personal Injury

Intentional Injury in Defense of Personal Property

Products & Completed Operations

Care, Custody and Control

Legal Expense & Defense Cost Reimbursement – $25,000 Each Occurrence; $25,000 Annual Aggregate

Advertising Liability

Non-Owned Auto (including physical damage)

Incidental Malpractice

Contingent Employers Liability

Fire Extinguishing Agent Release

Employee Benefits Liability – Claims Made – $1,000,000 Limit

Employees as Additional Insureds

Tenants Legal Liability – $250,000 Sub-Limit

Lost Key Cover – $50,000 Sub-limit

Product Recall Extension – $25,000

Medical Payments – $25,000 each person; $25,000 each accident

Limited Pollution Liability Extension $1,000,000 Each Occurrence & Aggregate

Blanket Additional Insured’s Clause

Owners and Contractors Protective coverage

Other coverage available:

Property Insurance

Business Interruption

Crime Coverage – including 3rd party property extension

Cyber – Stand-alone

Employers Liability

Mechanical Breakdown

Errors and Omissions

Umbrella and Excess

Who we cover:

Alarm and Security Installers, Manufacturers and Distributors

Monitoring Stations

Portable and Fixed Fire Suppression Systems (excluding sprinkler)

Private Investigators

Security Guards

Concierge Services

For more information, visit our product page at https://swgins.com/product/swgsecure.html

Content is current as of the date of broadcast and is subject to change without notice.


  1. https://www.ibisworld.com/canada/market-size/security-services/