InFocus: Security Services

Security services are exposed to legal risks

Security services are exposed to legal risks

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Security services in Canada are on a growth curve. In the five years leading up to 2019, the security alarm services industry is predicted to face a gradually improving operating environment as the economy continues to expand.

But as with any other business, security services are exposed to the possibility of legal action in respect of responsibility for personal injury or property damage through the activity of the service provider.

Claims can be expensive to defend, even more so if the service provider is found to be at a fault, stressing the importance of security services liability insurance to protect clients in respect of awards made against them and the defence costs of any claim.

According to Corinne Love, insurance underwriter at South Western Group Insurance, the security services market is growing substantially as more new homes are going up in Canada.

“All homes are now built pre-wired, so it’s easier to install security services,” Love said, “and so there is a need for installation skills, which means there are a lot more installers around. But there’s also an amalgamation in the market,” she said. “It used to be if you ordered cable internet Rogers would come out and install it, but now they’re offering alarm installation services too. So you have less specialists and more companies covering cable, internet and alarm installation themselves – a one stop shop.”
 
Example:
Clerical error on part of insured resulted in cancellation of monitoring service – fire occurred at 3rd party premises.
Loss to barn and livestock
Loss $175,000
Expense $15,000
 

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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.