Insurance for Toronto Security Companies
Is your Toronto security company protected financially against unforeseen events, mishaps, and accidents? You’ll need adequate business liability insurance to protect your security firm against potential lawsuits.
Security company insurance is customized to cover potential risks associated with security firms.
Wherever your security company is located in Toronto, the Greater Toronto Area (GTA), or anywhere in Ontario, a Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your business.
Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best coverage for your needs.
We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Toronto security company’s specific needs.
Why specialized insurance for Toronto security companies is needed
Security company insurance is specifically designed for these companies to provide coverage against allegations of negligence, claims of financial loss through errors and omissions, or third-party bodily injury or third-party property damage.
Given the high level of risk that can be involved, Toronto security firms require a specialized insurance plan tailored to their duties and to their risks.
Who needs security liability insurance?
- Security companies
- Security guards
- Private investigators
- Private bodyguards
- Bouncer services
What you need to know about care, custody and control exclusions
Traditional insurance policies may exclude coverage for damages to property under a company’s care, custody, or control. For Toronto security companies, their business insurance policy should ensure that this exclusion does not apply to the properties they are protecting.
It’s recommended to add the following insurance coverages to protect your Toronto security firm:
The following can fill in gaps left by exclusions in your business insurance coverage:
Personal injury extension coverage: Security guards may face claims of injury and discrimination, for example. Your security insurance policy should have an expanded personal injury extension to cover such claims.
Absence of failure to perform exclusion: Toronto security companies should ensure their policy does not have a “failure to perform” exclusion because if, for any reason, they fail to deliver on promised services, they could face substantial claims.
Intentional injury coverage: During their duties, security guards may need to use force to protect property or people and any intentional harm caused in these situations should not be excluded from the coverage.
Coverage for damages to protected property: Security companies are responsible for the properties under their watch. As a result, their insurance must cover any loss or damage to such properties.
Liability insurance is an essential part of your security firm insurance package. Here are the liability coverages that you need to help protect your Toronto security company from lawsuits.
Professional liability insurance
Professional liability insurance helps protect Toronto security and investigation firms from claims of negligence when they are performing their duties. It’s also called errors and omissions insurance.
This type of insurance protects against costs associated with claims or lawsuits that may financially damage your Toronto security services firm should it be sued by a client.
Commercial general liability insurance
Most commercial general liability policies for security companies cover claims of third-party bodily injury and property damage, such as clients or bystanders.
If your Toronto security company were sued, commercial general liability insurance would cover the legal costs to defend the claim in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
Cyber liability insurance
You keep sensitive financial information and data belonging to your clients and your Toronto security firm could be hacked by cyberthieves. Cyber liability insurance will help protect your firm financially should there be a cyber-attack.
Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.
Commercial umbrella insurance
You may want to consider commercial umbrella insurance for your Toronto security company. Commercial umbrella insurance, also known as just umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance, has reached its coverage limit.
The protection that umbrella insurance provides applies only to expenses related to liability such as legal fees, court fees, and legal settlements.
What other insurance do Toronto security businesses need?
Commercial property insurance
Commercial property insurance provides financial support to replace or cover repairs to your Toronto security firm if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers the firm’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Business interruption insurance
This type of insurance supports you when your Toronto security and investigation company can’t operate due to a covered loss.
There are a number of losses that can force your security firm to shut down. Some examples are:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Fleet insurance
Does your Toronto security company have its own vehicles? If so, you will need fleet insurance if you have 5 or more vehicles that are registered and/or leased to your security firm.
All employees who drive your security company’s vehicles must be listed on your fleet insurance policy or a claim could be denied.
Fleet insurance is typically cheaper than having individual policies on each of your company’s vehicles.
Commercial auto insurance
Note that if you are using your car for your job in the Toronto security and investigation services industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.
Legal expense insurance
Legal protection insurance gives you access to legal advice, assistance, and coverage for legal disputes.
You will be able to get legal advice from an experienced lawyer on a set of common business topics. Legal expense insurance also helps cover the costs of a lawyer to pursue legal action.
How much does security company insurance cost?
The following factors are usually considered when determining the cost of your Toronto business insurance:
- Location(s)
- Services provided
- Number of employees
- Years of experience
- Annual revenue
- Any past claims
What do I do if I have a claim against my Toronto security business?
- Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
- Know your policy so that when you contact your broker you are familiar with what will be covered or not.
- Document the damage. Take photos right away and write down what happened.
- Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
- Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
- Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.
Here’s an insurance checklist:
- Do you have the best Toronto business insurance rate that suits your work?
- Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
- Are you or your employees using personal vehicles for work?
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage as a Toronto security business. Our experts are available now to help you navigate the business insurance journey to protect your Toronto business.
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