Patrol Vehicle Insurance - after Market Add OnApplying a vehicle wrap to your security guard patrol vehicle is a great way to promote your business and brand your company. But, is the wrap covered by your commercial auto insurance company if it is damaged or if the vehicle is stolen?
Branding your patrol vehicle with a wrap is an after-market accessory. You need to make your insurance broker aware of any aftermarket add on to a patrol vehicle, especially when the add-on exceeds a certain dollar value.
You can increase the replacement cost of the vehicle to include the wrap and other equipment added after the purchase. This way the additional money spent on the patrol vehicle will not be lost if damaged or stolen. If the aftermarket add on is not disclosed, any claim made to the auto insurance carrier can be denied because it wasn’t accounted for on the policy. In that case, you are on the hook for paying out of pocket.
It is always best to make a quick call to your trusted insurance broker with any questions you may have. The old saying "Better safe than sorry" always applies when it comes to insurance.
General Liability Application for Newly Formed Security Guard CompanyThoroughly completing the supplemental application can be difficult for a new start up security guard company. The application must be completed even if you do not currently have contracts, employees or current payroll. In this video I will walk you through the application and explain the information that the carrier is looking for from a newly formed guard company. I will also explain how to estimate armed security guard and unarmed security guard hours and payroll.
Liability Audit: Will you get returned premium if you over-estimate figures?Security Guard Industry General Liability Policy Audit: Does the insurance carrier return premium if you over-estimate the annual exposure?
So one of the major misconceptions I hear from security guard owners that purchased their liability coverage is they didn't understand at the beginning of the policy term that the policy is going to be auditable. They usually understand that, but they don't understand that the policy isn't going to be in their favor if they over project their estimated payroll, guard hours billed, whatever figure used to rate the policy.
So I want you to understand that when you're purchasing a liability policy for your guard company, you need to ask the carrier broker, whoever you're dealing with directly, is the policy auditable and will it
audit in your favor if you overestimate? So for example, at the beginning of the year you're asked to look into that crystal ball and you're going to project out for the full term or for the full year, what your payroll is going to be, guard hours billed.
Those are the most common ways to rate a policy. So you're going to project, let's just say I use a round number of 50,000. You're going to use 50,000 guard hours billed or payroll. At the end of that policy
term, what the carrier is going to do is they're going to audit the policy to see where your actual figures were.
So if you estimated 50 and it was actually 70, you're going to need an additional bill for that premium to account for that additional exposure that wasn't accounted for at the beginning of the policy term. So that bill is going to be due within anywhere from usually 30 days, depending on the carrier. Now what you need to do is bind a policy that audits in both directions. Like I said, the majority of the policies do not audit downward. So what you need to do is check to see if it does, it goes in your direction. So what I usually get is or hear from insurance companies, or I'm sorry, from security guard companies is "We estimated 50,000. We lost a couple of contracts, unfortunately. We weren't able to replace those contracts and our actual guard hours billed was 30,000." You're not going to get money back, in most instances. The carrier is not going to be sending you money back for premium used for exposure that wasn't accumulated during the policy term.
So that's a key point. When purchasing a policy, understand what you're going to get at the end of that policy because you want those numbers to be as correct as possible, but it's hard to predict the future. So you do want to purchase a policy that goes both directions.
Hopefully you found this information helpful. Always feel free to reach out if you'd like more information on this or any other questions you have. You can reach out to me at (949) 421-3524 is my
office, or you can always shoot me an email at email@example.com. Look forward to hearing from
ACA Compliant Health Plans for security guard companiesGuardPro Insurance offers ACA compliant health plans for security guard companies nationwide.
What's Needed for A New Security Guard Business Insurance Submissionhttp://guardproins.com/new-companies/
So you're new in business and you need general liability coverage as soon as possible. We come across newly formed companies every single day that run into the exact same situation. Which isn't a problem, we can get it done for you. But the problem that I always run into is getting the information I need to give you the best possible quote.
Frankly, the more information you provide me, the better chances you have of getting the best possible quote from the carriers that I have available to me.
So what is that information?
I'm going to send you an application, it's a very thorough application. I would tell you it's made for every type of guard company out there.
Since you're new in business, you're not going to be able to answer a lot of the questions that are going to be on there. But I'll tell you the questions you can answer, then you answer them as complete and thorough as possible. Go through the whole thing. On page 4 of that application, is an underwriting page. It's going to ask you "Estimated guard hours billed."
Now I can understand you might not even have any contracts, so how are you supposed to estimate the guard hours billed?
I would tell you just to give me a low ball of what your business plan is. Worst case scenario, where you'd be broken out between armed and unarmed. If it's 1000 guard hours billed, put that - and that's fine.
As you go through the 12th question is, "Estimated annual payroll broken out by types of contract."
Again, if you don't have any contracts I would tell you the exact same thing. Who's the first phone call you make once you're licensed and insured? What type of contract? Is it an apartment complex, is it an office complex, industrial? Whatever that is - put your payroll, estimated payroll in there - broken out between armed and unarmed.
But the main thing is to be as thorough as possible. Giving as much information as you possibly can on that application, and that's going to give me something to start working with.
Besides the application, the other information I would need is a resume of all the owners.
Since you're new in business, the carrier wants to make sure that you're properly qualified and have an understanding of the industry. And that resume can be comprised of law enforcement experience or security guard experience. Either or would be fine. The more experience you have, obviously the better.
So those 2 pieces of information are usually a great starting point.
In addition to that - if you have a sample contract already, forward that to me as well. Anything additional - post orders, if you have a contract that you're waiting to sign until you get the liability covered - forward me that contract and I can make sure that the wording is good enough or the indemnity language is good - Properly protecting yourself and hopefully the insurance carrier.
So I guess the main point is, give me as much information as you possibly can. I can always go through, sort the information and decide what would make a complete submission to my carrier. If you have any additional information or questions for me, give me a call at 949-421-3524.
Thanks, look forward to hearing from you.
Over the years we've had the opportunity to work with a lot of great security companies and have met an abundance of great people along the way...
Whether a startup or an established business, we look forward to serving the security guard industry for years to come.
Assault and Battery Insurance Coverage for Security Companieshttp://guardproins.com/
Assault and battery is one of the largest exposures for any security guard company. Are you covered? Craig from GuardProIns.com explains more.
“One of the largest exposures a security guard company has when it comes to claims, is assault and battery. So, what you want to do is when you’re reviewing your general liability policy or a quote for your general liability policy, is to look for that coverage. Make sure that that policy has an endorsement for assault and battery, and then you want to look at the policy form to see what it actually covers.
That being said, you also want to know what the limit is. If it’s the full-policy limit, great. If there is a sub-limit associated with it, you need to know that before you buy that policy. Like I said, my years of experience, the largest group of claims that I see come across are for assault and battery, so you want to make sure that you’re properly protected when you’re buying that policy.
If you have any other questions, always feel free to reach out to me and I can go into more depth.
Game DayCraig's a man who wears many hats... especially on game day.
Firearms Endorsement for Security Guard Insurancehttp://guardproins.com/
Craig from GuardProIns.com explains a very important endorsement you need to insure your security guard company properly. www.BSGIns.com
Firearms Endorsement for Security Guard Insurance
“So, if you have any armed guards whatsoever, you’re going to want to make sure that firearms endorsement is on your general liability policy.
You’d be surprised how many times I get that call that, “Hey, you know we have armed guards out onsite, but we have no firearms included as an endorsement on our policy right now.” So you want to make sure that the ‘firearms’ is included.
Also, each carrier is going to define firearms differently. I have some carriers, you know, that obviously a firearm is a gun. Other carriers also include pepper spray. I’ve heard other carriers that will also include a Taser. So, any type of discharge or projectile, you want to make sure that how your carrier is going to define that, and you want to make sure that it is included in your liability policy, especially if you’re going to incur that type of exposure.
If you have any other questions, feel free to reach out to me and we can go into more depth. Thanks.”
Insurance for Security Guards Working with Marijuana Dispensarieshttp://guardproins.com/
Craig from GuardProIns.com discusses what to expect while acquiring insurance for a security guard company that works with marijuana dispensaries. Learn more at BSGIns.com
“The major question I’m getting today is coverage for marijuana dispensaries, and I know it’s a hot topic right now. We do have liability policies that cover that type of exposure, that’s not a problem, but what we really need to do is get as much information from you as possible so we can get it underwritten correctly. I can tell you if you’re a new business venture that is exclusively going after marijuana dispensaries, 100% of your operation’s is going to be those dispensaries; it’s going to be a little bit more difficult to get you covered. It’s not to say I can’t, but I can tell you that I might be a little bit more expensive. Typically, what carriers like to see, they like to see a percentage in the marijuana dispensary, but they don’t want to see 100% of your operations in that industry. If it is, either way the information’s still going to be the same that I need to obtain. I need a really thorough supplemental application with all payroll on there, broken up by contract, armed and unarmed. That application is on our website. I’m going to need that as thoroughly completed as possible.
The other thing if you’re new in business, they’re going to want to see a resume of the owners. That resume has to provide detail of experience, qualifications and background in the guard industry. They want to make sure that you’re not new to this industry. They want some longevity.
The third thing is they’re going to want the locations. Even if you don’t have a contract right now with the marijuana dispensary, the possible location that you’re going to be at. The location, the address and the name of the dispensary. If you have a sample contract with this dispensary they’re going to want to review that as well, the post-orders.
Those are the main things that they’re going to want to see to start the underwriting process, but let’s say we get all that information, I send it out to my underwriter, what can you expect in return as far as liability premium? That’s a tough question to answer because it’s really going to range depending on your operations, but really what I’m seeing out there right now is, the best case scenario, is going to be $7500. That’s best case. Worst-case scenario, if you fall under that minimum-premium, it’s going to be around $15,000. I would tell you the majority of people I’m talking to right now fall in-between there. Anywhere from around $9000-12,000, depending upon your expected payroll, guard hours billed and how many of these dispensaries you’re going to go after.
That’s it in a nutshell. If you have any other questions, always feel free to reach out to me or look at our website and go through our video library to see if there’s any other questions that I can answer for you on there.”
What's Covered Under General Liability Insurance for a Security Guard Company?http://guardproins.com/
What's Covered Under General Liability Insurance for a Security Guard Company?
“The question I get quite often from new business owners that are just starting up in the security guard industry is when I present them with a liability quote. Sometimes they ask, ‘Hey, does this also include workers compensation for an employee or employees, or for an auto that I own?’
The simple answer is no, it does not. Those insurances are going to be provided through separate coverages. An employee you have is going to be provided through workers’ compensation. If the company owns a vehicle, it's going to be provided through a commercial auto policy.
General liability is going to protect you from any third-party claim brought forth against the company for bodily injury or property damage.
So, we can always go through and I can get more information from you as far as what the company does have - if you have employees, autos, any other exposures that can be covered through other insurances. But, your liability is just going to be covering you for any third-party claim brought against the company for a bodily injury or property damage.”
Learn more at www.BSGIns.com
How Much is the Deposit for Security Guard Insurance?http://guardproins.com/
Craig from GuardProIns.com explains what affects the amount of deposit for general liability insurance for your security guard startup. Learn more at www.BSGIns.com
How Much is the Deposit for Security Guard Insurance?
“So, what’s the typical general liability deposit for a new business security guard start up?
That’s going to depend on a couple of factors. One of the factors is going to be, of course, the premium we obtain for you. Ninety-five percent of the people I talk to that are new in business fall within the range of between $2,500 annually to $3,500 annually. That range depends upon the type of contract you’re taking on, your experience and qualifications in the industry.
So, let’s say it’s middle of the road, $3,000. The carrier’s going to require that I collect 25% of the minimum premium. So, I’m going to have to collect 25% of that $3,000 which is $750. And then there are taxes and fees associated with these policies. Those range anywhere from $300-$500 depending on the state you’re in, the carrier that quotes it. So, let’s say it’s $500. So, I’d have to collect for a deposit, in order for you to bind it and get a certificate of insurance, I’d have to collect $1,250…
Of course, that’s just a scenario, but that’s typically where I see these new business start-ups fall between. Somewhere around, $1200 to $1300 depending on those factors. So that’s a good range to look at and to put into your business plan.
If you have any other questions, always feel free to reach out to me. You can go to our website at BSGIns.com or you can give me a call directly. My direct line in 949-421-3524.
And my name’s Craig. Thank you.”