Jeffrey Wade
Security guards are critical to the safety and security of businesses, government institutions, and the public. Their work involves patrolling and inspecting property to protect people and their belongings from fire, theft, and vandalism, among other harmful activities. Due to the nature of their work, security guards are often required to have insurance coverage. In Texas, security guard insurance is regulated by the Department of Public Safety (DPS), which conducts fingerprint-based background checks on applicants and investigates and resolves complaints. This insurance coverage can include general liability insurance, workers' compensation insurance, and commercial auto insurance, depending on the specific needs and operations of the security guard company.
| Characteristics | Values |
|---|---|
| Type of insurance | General liability insurance, commercial property insurance, commercial auto insurance, workers' compensation insurance |
| Who it covers | Security guard companies, unarmed security guards, armed security guards, government private security companies |
| Purpose | Protects businesses from accidents, injuries, legal fees, damaged vehicles, property damage, and employee injuries |
| Cost factors | Business location, income level, track record, management experience level, whether guards are armed |
| Providers | NEXT Insurance, BSGIns, El Dorado Insurance Agency Inc., Wexford Insurance, Southern States Insurance |
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What You'll Learn
General liability insurance
Security guards are critical to the safety and security of businesses, government institutions, and the public. Their work involves patrolling and inspecting property to protect people and their belongings from fire, theft, vandalism, and other harmful activities. This line of work can be dangerous, and even deadly, and security guards can often find themselves in risky situations.
BSGIns and NEXT Insurance are two companies that offer general liability insurance for security guard companies.
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Commercial auto insurance
In Texas, commercial auto insurance is legally required for any vehicle used for business purposes. This includes security guard companies that use cars, pickup trucks, box trucks, or commercial vans in their operations. The state mandates a minimum amount of auto liability insurance coverage, known as the 30/60/25 split limit. This means that insurance providers must offer a minimum liability limit of $30,000 per person and $60,000 per accident for bodily injury, and $25,000 for property damage.
The cost of commercial auto insurance in Texas can vary depending on several factors. The type of business vehicle, its value, and the location of your business can all influence the price. For example, commercial auto insurance rates tend to be higher in larger cities like Dallas compared to smaller cities. Areas prone to weather-related events, such as hurricanes and tornadoes, may also experience higher rates. The distance travelled by the vehicle and the driving records of employees with access to company vehicles can also impact the cost of insurance.
By investing in commercial auto insurance, Texas security guard companies can mitigate financial risks and ensure compliance with state regulations. It provides essential protection against accidents, liabilities, and legal claims, ensuring that the business can continue operating without facing significant financial strain due to vehicle-related incidents.
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Commercial property insurance
In Texas, commercial property insurance is designed to protect the physical assets and financial stability of a business. It typically includes several key coverages, such as building and personal property coverage, which safeguards the business's physical assets, including the building and its contents, against various perils. It also includes builders' risk coverage, which provides protection for property under construction or renovation, covering any damage to the structure and materials.
The cost of commercial property insurance in Texas is influenced by several factors, including the location of the property, the value of the property and its contents, the type of business and the associated risks, and the deductibles chosen. Improving security measures, such as installing security systems, fire alarms, and sprinklers, can help lower premiums.
Security guards, in particular, may benefit from commercial property insurance as it can provide coverage for the different risks they face in their line of work, including protecting people and their belongings from fire, theft, vandalism, or other harmful activities.
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Workers' compensation insurance
Security guard companies in Texas are required by law to carry worker's compensation insurance if they have a certain number of employees. This insurance provides compensation for lost pay and medical expenses for employees who are injured on the job. It is important for security firms to have the appropriate insurance coverage to protect their business and employees.
Worker's compensation insurance is a type of insurance that provides benefits to employees who are injured or become ill due to work-related activities. This includes medical expenses, lost wages, and rehabilitation costs. In Texas, worker's compensation insurance can be purchased from licensed insurance companies, and employers must have at least one employee to buy this insurance. The employee can be part-time, and independent contractors and construction workers may have different requirements.
There are various options for obtaining worker's compensation insurance in Texas. Employers can purchase a policy from an insurance company, self-insure their claims, or join a self-insurance group. Large private employers may choose to self-insure, but they must meet specific financial requirements and receive approval from the DWC. Self-insurance groups must be approved by the TDI and consist of members in the same or similar businesses.
It is important to note that Texas law does not recognize alternative policies or coverage bought from unlicensed insurance companies as worker's compensation. This means that employers may lose their legal protection against lawsuits, and injured employees could sue for damages. Additionally, alternative policies may have dollar and time limits, potentially resulting in additional costs for employers if the employee's care expenses exceed the limit.
When purchasing worker's compensation insurance in Texas, employers can refer to the Texas Workers' Compensation Rate Guide to find the best rate. If they are unable to find a company that will sell them a policy, they can buy insurance from Texas Mutual Insurance Company, which serves as the insurer of last resort for the state.
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Umbrella policies
While it is not required by Texas state law to carry an umbrella insurance policy, it is highly recommended for those with sizable assets. Umbrella insurance is a type of personal liability insurance that provides additional coverage when a claim exceeds the limits of your standard insurance policies, such as homeowners or auto insurance. It can also cover certain liabilities that may not be included in your other policies, such as false arrest, defamation, slander, or libel.
Umbrella insurance is designed to protect your assets by paying large medical and repair bills that you are deemed responsible for. It can help cover the costs of harm to others or loss of their property, as well as legal fees. This type of insurance is typically purchased in increments of $1 million, with policies ranging from $1 million to $5 million or more. The cost of umbrella insurance can vary, with a $1 million policy costing around $150-$400 per year.
To determine the amount of umbrella insurance coverage you need, you should consider the value of your assets, including your home, stocks, mutual funds, and retirement accounts. It is important to note that umbrella insurance does not cover losses to your own personal property. Additionally, you may be required to insure your home and vehicles through the same company that provides your umbrella policy, and bundling these policies can often result in discounts.
Umbrella insurance can provide peace of mind and financial protection in the event of a large claim or lawsuit. It is a valuable addition to your insurance portfolio, ensuring that you are not forced to use your current assets or future earnings to cover unexpected expenses. By understanding the coverage limits of your existing policies and the potential risks you may face, you can make an informed decision about the level of umbrella insurance that is appropriate for your situation.
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Frequently asked questions
Security guard insurance in Texas is provided by companies like Wexford Insurance, which works with top insurance companies to provide affordable and quality insurance for private security firms, unarmed security guards, armed security guards, and government private security companies in Texas.
The coverage depends on the specific operation, but it usually includes general liability insurance, workers' compensation insurance, and commercial auto insurance.
Security guard insurance is necessary to protect security firms from the risks they face. It also helps them meet client requirements, as some clients may ask for a certificate of insurance before working with them.
The cost depends on various factors, including the company's size, track record, management experience, and the location where the security services are provided. The premium cost is typically higher for armed security guard services due to the increased risk.
You can obtain Texas security guard insurance by contacting insurance providers like Wexford Insurance, El Dorado Insurance, and Southern States Insurance, which offer online applications and free quotes.
