Having found retirement to be too lax, you decided that you wanted to start a small business in an area that you had experience: law enforcement. With that, your private security company was born.
Wanting to maintain a close relationship with the public, your security company specializes in home security. In your job, you are invited into people’s homes to examine their vulnerabilities. After developing a home security plan, you and your staff install alarm systems, including motion detectors and video surveillance. If there is any sort of disturbance, a security officer will report to the home right away.
The purpose of your small business is to protect people, but your business needs protecting too. Here are four reasons why security companies need business insurance.
A member of your security team used unnecessary force against a suspect
A security officer was alerted to a disturbance at a client’s house. After arriving at the home, the security officer spotted the suspect and tackled him, fracturing the suspect’s arm. The suspect was actually the owner of the home who accidentally locked himself out, and when he tried going through an open window, he triggered the alarm system.
Because the security officer acted before accessing the situation, the client had grounds to sue your company for damages. Small business liability insurance will cover the medical fees of the client and take care of other financial damages resulting from the employee’s actions.
A member of your security team has a felony record
This may read as a worst-case scenario situation, but security company employees have been found to target their clients for violent crimes.
Notorious serial killer Dennis Rader AKA the BTK Killer worked for ADT Security Services during his murder spree. He took what he learned about surveillance from working with the company and used those techniques to stalk and fatally harm his victims, unbeknownst to his employer.
If it’s learned that an employee of yours has a violent history or has put a client at risk, you could be sued for negligence. Professional liability insurance will cover the financial burden of litigation and will pay restitution fees soon after you pay your agreed upon deductible.
The video surveillance equipment did not capture a burglary
Because an employee stopped doing routine inspections to make sure your client’s video surveillance was up and running, a burglar was able to break into the house and steal the client’s valuables, but not before trashing the house.
After it’s learned that the trespasser was able to get away because of faulty surveillance equipment, the client can, again, take you to court, potentially bankrupting your business. Small business insurance would pay for the costs of new equipment and replacing your client’s lost items. Small business insurance would also pay your litigation fees should the client take you to court.
The surveillance equipment attached to the corner ceiling fell on the client
After installing the camera and showing the client how to use it, the camera falls on top of the client’s head.
General liability insurance would pay for the client’s hospital visit and any recurring medical fees as result of the accident. It would replace the damaged equipment too!
Along with business insurance, your security company should invest in a cyber policy too. Hackers can break into network surveillance systems and spy on your client and your operation. Cyber insurance would pay for the damages and replace the compromised equipment.
For more information on business insurance, click here with CoverHound.