Security Guard Insurance: Average Cost, Coverage and Providers

Have you ever wondered what would happen if your security guard company faced a lawsuit after an incident? The financial and legal risks can be overwhelming, whether it’s a claim involving third-party injury or even an armed guard-related mishap. That’s where security guard insurance becomes your most valuable safeguard.

This specialized insurance protects your business from liabilities, ensuring you have the right coverage to handle potential risks. But understanding the costs, what’s included, and how to find the right provider isn’t always straightforward.

In this blog, we’ll break it all down for you. You’ll discover:

• What is security guard insurance, and why is it essential?
• Key factors influencing the cost of armed security guard insurance.
• The typical coverages included in a policy and what to look for in a provider.
• How to get the best quote tailored to your needs.

By the end, you’ll have the insights to safeguard your business, employees, and reputation—without breaking the bank.

What is Security Guard Insurance?

Security guard insurance is critical for protecting businesses in an industry with unique risks. With over 735,000 security guards employed in the U.S., the sector safeguards people, property, and operations across various environments. Whether your team consists of unarmed guards or armed personnel, this specialized insurance protects you against liabilities unique to your field. 

What Makes Security Guard Insurance Different?

Unlike general business insurance, security guard insurance takes into account the risks security companies face on a regular basis. Here’s how it stands apart:

• Armed and Unarmed Guards: The risks differ significantly if your team provides desk security at a corporate office or armed patrols at a high-risk event. Security guard insurance adapts to the nature of your services, ensuring you’re protected in both scenarios.
• Industry-Specific Risks: Security businesses deal with liabilities most industries never encounter—like safeguarding client property or coping with physical altercations. Security guard insurance is built to address these unique exposures, protecting both you and your clients.

The Cost of Armed Security Guard Insurance

On average, armed security guard insurance can range from $500 to $2,000 annually per guard, depending on various factors. For a small firm, total premiums might start at around $6,000 annually, while larger companies with more guards and higher coverage needs may pay $50,000 or more each year.

But what determines where your business falls on this spectrum? Several factors unique to your operations shape your insurance costs. Here’s a closer look:

1. Nature of Services Provided

• Risk Level of Duties: Insurance companies assess the specific roles of your guards. For example, a security officer stationed at a corporate reception desk might cost $450–$600 annually per guard to insure. In contrast, an armed guard escorting cash for an armored vehicle service may cost upwards of $1,200 per guard per year.

2. Location-Based Risks

• Crime Rates and Population Density: Operating in areas where the crime rate or occurrence of natural disasters is high can elevate insurance costs. These environmental factors work similarly to how businesses assess risks for commercial property insurance. For example, an armed guard in a high-crime area of Houston could cost $1,500 annually per guard. On the other hand, the same guard in a quieter town like Amarillo might cost closer to $1,000.

3. Size of Your Business

• Number of Guards and Coverage Scope: The more employees you have, the more coverage you need. For instance, a company with a team of 50 armed guards might pay $50,000–$70,000 annually for comprehensive coverage. A small firm with 5 guards might only pay $6,000–$8,000 annually.
• Revenue and Client Contracts: High-value contracts, such as securing luxury retail stores or government facilities, increase liability, and premiums adjust accordingly.

4. Experience and Claims History

• Track Record of Your Business: A well-established business with a spotless claims record is viewed as less risky and may pay 10–15% less premiums. Conversely, a newer company or one with past claims might face rates closer to $2,000 per armed guard annually.
• Training and Certification Standards: You can negotiate lower premiums if your company provides specialized training, such as firearm handling or de-escalation techniques.

5. Armed vs. Unarmed Guards

• Firearms Coverage Costs More: Firearms introduce a significant liability risk, increasing premiums for armed guards. For example, in Texas, coverage for an unarmed guard might cost $500–$700 annually per guard. On the other hand, coverage for an armed guard can range from $1,000–$2,000, depending on factors like experience and location.

6. High-Risk Contracts and Environments

• Special Assignments: Providing security for high-risk environments such as banks, jewelry stores, or events involving VIPs raises costs. For example, insuring armed guards at a high-profile event in Austin could cost $1,800–$2,200 annually per guard.

7. Policy Limits and Deductibles

• Coverage Levels You Choose: Higher policy limits can give you increased protection but at the cost of a higher premium. For example, a $1 million liability policy per occurrence may cost $12,000 annually for a small business. Similarly, a $5 million policy could reach $20,000 or more.

While costs vary, it’s also significant to keep in mind the various coverage types included in a typical policy. Here are the key components to look for.

Key Coverages in Security Guard Insurance

1. General Liability Insurance

It protects your business from third-party claims of bodily injury, property damage, or personal injury caused by your security operations.

Example: If a guard accidentally damages a client's high-value surveillance system or a visitor trips over equipment, this policy covers the costs.

It typically includes:

• Premises Liability: Covers incidents occurring at your client’s site, such as slip-and-fall accidents.
• Product Liability: Covers damages caused by the equipment you provide, like faulty security cameras.

2. Professional Liability (Errors & Omissions)

It protects against claims of negligence, errors, or omissions while performing professional duties.

Example: If a guard misses a scheduled patrol, resulting in a theft, this coverage helps manage the legal costs and settlements.

It covers scenarios such as:

• Failure to meet contractual obligations (e.g., not providing promised services).
• Improper training of guards resulting in operational errors.

3. Assault and Battery Coverage

It provides protection in cases where guards are accused of using excessive force or causing harm during altercations.

Example: If a guard physically restrains someone during a disturbance and is accused of assault, this coverage handles legal fees and settlements.

It’s critical to security companies because:

• Higher-risk roles, like event security or armed patrols, often involve situations where physical contact is more likely.
• Guards can face allegations even if they acted appropriately.

4. Firearms Liability Coverage

It is essential for companies to employ armed guards as this covers incidents involving the use or accidental discharge of firearms.

Example: If a firearm discharges unintentionally during duty and causes property damage or injury, this coverage applies.

To be eligible, the key requirements include:

• Proof of training and certification for guards carrying firearms.
• A clear policy on firearm use and storage.

5. Workers' Compensation Insurance

It covers medical expenses, rehabilitation costs, and lost wages for guards injured on the job.

Example: If a guard sustains an injury during a physical altercation, this ensures they receive proper care without affecting your business’s finances.

It also covers:

• Occupational Diseases: Such as hearing loss from long-term exposure to loud environments.
• Death Benefits: Financial support for a guard’s family in the event of a fatal incident.

6. Care, Custody, and Control Coverage

It protects against claims related to damage or loss of client property under the guard’s supervision.

Example: If a guard accidentally damages the high-value inventory they were assigned to monitor, this coverage helps repair or replace the items.

You should be mindful of the following details:

• Coverage limits are often defined per incident.
• Documentation of responsibilities outlined in client contracts may be required.

7. Punitive Damages Coverage

It protects your business from financial losses related to punitive damages awarded in lawsuits.

Example: If a court awards punitive damages in a negligence case involving your guard, this coverage absorbs the financial burden.

The limitations of this policy include:

• Coverage may exclude intentional acts by employees.
• Insurers often scrutinize claims for eligibility.

8. Umbrella Liability Insurance

It extends the limits of your existing policies, such as general liability or professional liability.

Example: If a high-profile incident results in damages exceeding your standard liability limits, umbrella insurance covers the excess amount.

It is best suited for high-risk businesses, such as:

• Companies managing large-scale contracts.
• Businesses operating in high-liability environments, like VIP or event security.

Once you’ve identified the types of coverage your business requires, the next step is finding out how to get accurate quotes. Here’s how to approach this process.

How to Obtain Quotes for Security Guard Insurance

To make the process smooth and ensure you get the right coverage, here’s what you need to know:

1. Gather the Necessary Documentation

Insurance providers typically require detailed information about your business to assess risks and provide a quote. Be prepared with:

• A completed supplemental application outlining your services (armed/unarmed guards, patrol areas, etc.).
• Claims history for the past 3-5 years, if applicable.
• Resumes of key personnel, highlighting their experience and certifications, especially for armed guards.
• Details of contracts or services provided, including high-risk assignments like events or VIP security.

2. Provide Detailed Business Information

The more precise your information, the more tailored your quote will be. Insurers will typically ask about:

• Employee count and roles (armed vs. unarmed, desk duties vs. patrols).
• Geographical areas of operation and crime rates in those locations.
• Specialized services offered, such as K-9 units or event security.

3. Understand the Timeline for Quotes

Most providers aim to deliver quotes quickly, but timelines can vary based on the complexity of your business:

• For smaller firms, quotes are often provided within 24-48 hours after submitting all required documents.
• It may take up to 72 hours for larger or high-risk businesses to finalize a quote.

5. Work with an Experienced Agent 

Partnering with an agent who understands the unique needs of security businesses can save you time and ensure you get the right coverage. Brokers can:

• Help identify gaps in your current coverage.
• Negotiate better terms with insurance providers.
• Recommend additional policies, like firearms liability or care, custody, and control, if needed.

For example, TWFG Khan Insurance has extensive experience working with high-risk industries, including security businesses. Our deep industry knowledge and access to top-rated insurance carriers help you find tailored solutions easily.

With an understanding of the coverage types, the next step is finding the right provider to match your specific needs.

Leading Providers of Security Guard Insurance

What to Look for in a Provider

When comparing providers, consider the following factors:

• Industry Expertise: Providers specializing in high-risk industries often offer tailored policies for armed and unarmed guards.
• Customizable Policies: Look for flexibility in adding specific coverages like firearms liability, assault and battery, or care, custody, and control.
• Claims Handling: A reliable provider should have a strong track record for timely claims processing.
• Coverage Range: Evaluate whether the provider offers comprehensive solutions, including workers’ compensation, umbrella liability, and general liability.
• Reputation: Research the provider’s reviews and client testimonials to ensure their solid reputation in the security industry.

Popular Providers of Security Guard Insurance

While each business has unique needs, some well-known providers of security guard insurance include:

1. Hiscox Insurance – Known for customizable liability policies tailored to small businesses.
2. The Hartford – Offers comprehensive packages for high-risk industries, including specialized liability coverage.
3. Travelers Insurance – Focuses on large operations with broader coverage limits and additional endorsements.
4. Markel Insurance – Provides industry-specific policies, including coverage for armed guards and high-risk assignments.

Real-world examples often highlight just how important it is to have the right coverage in place. Let’s look at a case that underscores the risks of insufficient insurance.

How TWFG Khan Insurance Can Help

Navigating the complexities of security guard insurance requires expertise and a deep understanding of your industry’s unique risks. At TWFG Khan Insurance, we simplify the process by:

• Connecting You with Top Providers: We work with highly rated insurance carriers to find policies tailored to your needs, whether you manage armed or unarmed guards.
• Identifying Coverage Gaps: Our team analyzes your existing policies to uncover any potential weaknesses, ensuring you’re fully protected.
• Negotiating Competitive Terms: With our industry expertise, we secure your business's best possible rates and terms.
• Offering 24/7 Claims Support: Accidents don’t wait, nor do we—our team is available around the clock to assist you.
• Providing Comprehensive Solutions: From general liability to specialized coverages, we protect your business from every angle.

Get a quote with us today and protect your security business with confidence.