Security service companies tend to have a higher exposure to incidents involving physical confrontation due to the nature of the business. Although South Western Group does not provide cover for very high risk clients such as bouncers or guards at liquor establishments like bars and nightclubs, it does acknowledge that there is a greater exposure to personal injury, particularly for guard providers.
As a result it is particularly important to make sure your client’s policy covers claims for compensation which could put the company’s financial stability at risk.
Colleen Bliss, senior underwriter for South Western Insurance Group, said that the company will insure concerts, sporting events and socials but will ask additional questions, especially when there is the possibility of the client’s employees physically removing people.
South Western expects employees to have a minimum of three years experience and basic training based on provincial regulations, including use of force training. Most situations that require a guard to act physically also require a police presence, rather than allowing the guard to physically handle a situation.
But with an increased demand for guarding services, due to the rapid expansion of the condo building market for example, guards are also becoming exposed to new risks, as well as diversifying their services into areas such as concierge that could expose them yet further and might require more tailored cover.
Guard hired to monitor premises. Claimant arrived at premises demanded entry and became threatening. Guard struck claimant causing Bodily Injury.
Loss in excess of $700,000
Expenses in excess of $50,000