SWG SECURE: Security Services Insurance is in Season - Here’s What Brokers Need to Know

January 8, 2020

Security measures have become a central concern for retail businesses, corporations, educational institutions, and other organizations as the winter season kicks into full swing. Shopping centres expect a spike in both crowds and holiday theft. Universities and colleges increase security guard presence on campus as the days get shorter. Statistics Canada reported a 14% increase in shoplifting of $5,000 or under, a 15% increase in theft over $5,000, and a 12% increase in fraud between 2017 and 2018. The number and severity of reports of fraud, including identity theft, have also been steadily increasing (46%) since 2008. (1)

As guard, investigative, and other security services become increasingly popular among corporate and government services, brokers have a unique opportunity to take advantage of this growing market.

Protecting Security Companies at Their Most Vulnerable:

In Canada, security services is a 6bn dollar industry that has grown by 2.3% every year since 2014. (2) Here are some of the major exposures that can put a security company at risk.

Security guards can be held liable for bodily injury if security incidents become physical. This is because in most cases, it is not a security guard’s job to physically handle a situation.

In addition, security issues leading to theft or other losses occur because of miscommunication, poor or incomplete training of security staff, or other forms of negligence on the part of security personnel. Even if security guards are highly competent, mistakes can and do still happen where security situations are misinterpreted, leading to alleged misconduct.

What Makes SWG Secure Unique:

SWG Secure insurance provides coverage not normally offered by traditional insurers so that brokers can offer their clients a wide range of coverage options at fair and competitive prices.

Businesses that provide security guard services, private investigators, 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. We do this by evaluating the complete risk picture, offering 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.

Coverage Highlights:

Commercial General Liability (Occurrence Form):

Failure to Perform

No General Aggregate Limit

Design Errors & Omissions

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

Bodily Injury and Property Damage – Broad Form

Incidental Malpractice

And more

Other Coverages Available:

Property Insurance

Business Interruption - Profits/Gross Earnings/Extra Expense

Crime Coverage – Employee Dishonesty – Form A

Fidelity – third party feature

Cyber Liability

Employee Benefits Liability

Employers Liability

Mechanical Breakdown

Errors and Omissions – Claims Made - $250,000 Limit Each Occurrence; $250,000 Annual Aggregate (higher limits available)

More details are available on our website.


Sources:

  1. https://www150.statcan.gc.ca/n1/pub/85-002-x/2019001/article/00013-eng.htm
  2. https://www.ibisworld.com/canada/market-research-reports/security-services-industry/