InFocus: Security Services

Risk through diversity

Risk through diversity

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With the security services industry becoming saturated, providers are forced to diversify to remain competitive in their industry. But this diversity exposes service providers to greater risks.

Guards may offer parking enforcement. Private Investigators may handle process serving. But the extent of services provided may well extend beyond the typical. Alarm installers are now offering non-security related operations such as home automation, according to Colleen Bliss, senior underwriter for South Western Insurance Group, because the installation is similar enough but rather than security includes centralized control of lighting, dimmers and other electrical devices such as home theatre/entertainment systems and audio/video systems.

On the flip side, typical electricians may offer a portion of alarm installation to broaden their business in which case Failure to Perform coverage is now required.

Bliss says that South Western is trying to accommodate as many operations as it can under one policy, but it is crucial that all operations are communicated to the broker and the insurer to ensure acceptability.

“So for an electrician, other electrical work is typically fine. But we’ve had providers doing contracted construction work – and not just a little drilling – but putting in flooring and all kinds of renovations,” Bliss says.

“Standard markets may elect to exclude a portion of a company’s operations, in which case two policies would be required,” and brokers need to be aware of this.

Example:
During alarm installation insured drilled through main electrical feed to a residential complex. 
Cost to repair Loss - $91,000
Expense $11,000
 

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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.