InFocus: Security Services

Insurance requirements for security services

Insurance requirements for security services

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Security services industry insurance is designed to encompass a wide range of coverage requirements from security guards, private investigators, alarm installers and monitoring stations, to CCTV installation, sprinkler contractors and fire alarm services.

Security guards have also seen a lot of growth in Canada, with many businesses and properties like condominiums employing them for perimeter security and concierge as well as some telephone answering servicing.

In this diverse range of service providers, the biggest hurdle for brokers is getting the insureds to understand what type of coverage they need and why. According to Corinne Love, insurance underwriter at South Western Group Insurance that problem has been largely solved with more and more mandates coming down from provincial regulators and bodies like the Bureau de Securite in Quebec and the regional regulator in Ontario.

Love notes that alarm installers need to have CGL and include a failure to perform coverage. “We’re also more and more getting into the fact that people are consulting for fees which takes an installation out of the encompassing design and coverage offered by failure to perform and so they’re now needing E&O insurance,” Love says. “So we’re including a $250,000 E&O coverage, but they can upgrade that to $1m or $2m.”

But Love notes that one of the main hurdles is not only explaining why insureds need a failure to perform cover, but that it actually needs to be written on the cover sheet versus a silent clause on a GL cover note.
 
Example:
Burglar alarm installed by insured failed - 3rd party suffered burglary
Loss Paid - $25,000
Expenses $2,500
 

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South Western Insurance Group Ltd. (SWG) is a Wholesale Insurance Intermediary / Managing General Agent offering a broad range of insurance solutions for specialty, niche, program and hard-to-place business. Since 1961 we have proudly provided underwriting expertise to independent insurance brokers across Canada.
We have earned a reputation for excellence in underwriting, risk management and customer service. We are continuously perfecting the way we do business and are satisfied with nothing less than the absolute highest level of service.
Using electronic delivery systems and paperless file management we have been able to significantly reduce document delivery time as well as more quickly respond to broker needs.
This gives brokers the ability to service their clients faster and increase their business.