Armored Car Insurance Policy Information
Armored Car Insurance. If you own and operate an armored car business, you have a lot riding on your vehicles and your staff.
Whether your business only transports cash or you move other valuable items, such as artwork, jewelry, gemstones, precious metals, or pricey electronics, you are responsible for making sure that whatever it is that you move safely arrives at their destinations.
Armored car services transport cash, currency, event tickets, food stamps, gems, jewelry, lottery tickets, stocks/bonds, and other high-valued items for clients. Armored cars are bulletproof, designed to resist robbery, and built to handle temperature extremes.
Drivers and guards are armed. The driver remains in the cab from the time it leaves the garage until its return. The guards are stationed in the rear. One leaves the vehicle to pick up or deliver the valuables as quickly as possible, while the other remains outside to identify possible threats.
The armored car has cameras so drivers can remain in visual contact with the main location at all times. There may be flashing lights, sirens, or heavy-duty bumpers.
Services may be limited to transporting items from one destination to another, or may include pickup and delivery, tally and deposit, and storage on the armored car premises when banking or deposit facilities are not open.
Needless to say, as the owner and operator of a armored car business, you face a lot of risks. In order to protect yourself from those risks, making sure that you are properly insured is imperative. Read on to find out what type of armored car insurance you'll need to carry in order to safeguard your armored car business.
Armored car insurance protects your cash-in-transit business from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked armored car services insurance questions:
- What Is Armored Car Insurance?
- How Much Does Armored Car Insurance Cost?
- Why Do Armored Car Services Need Insurance?
- What Type Of Insurance Do Armored Car Services Need?
- What Does Armored Car Insurance Cover & Pay For?
What Is Armored Car Insurance?
Armored car insurance is a specialized type of insurance that covers the risks associated with operating and maintaining armored vehicles. This type of insurance is typically used by businesses and organizations that transport valuable goods or cash, such as banks and jewelry stores.
The coverage may include protection for damages to the vehicle, injuries to drivers or passengers, and loss or damage to the contents of the vehicle. It may also include liability coverage for accidents or incidents that occur while the armored car is in transit.
How Much Does Armored Car Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small armored car services ranges from $77 to $99 per month based on location, number of trucks, revenue, claims, experience and more.
Why Do Armored Car Services Need Insurance?
Armored car services need insurance for several reasons:
- Protection against losses: Armored car services transport large amounts of cash and valuable assets, making them a target for theft and robbery. Insurance can provide protection against these losses and help to cover any financial losses incurred as a result.
- Liability coverage: Armored car services may be held liable for any accidents or incidents that occur while they are transporting assets. Insurance can provide protection against these types of liabilities and help to cover any legal or medical expenses incurred as a result.
- Compliance: Many states and municipalities require armored car services to have insurance coverage in order to operate legally.
- Reputation: Having insurance can help to build trust and confidence with customers, as they know that the company is taking steps to protect their assets and ensure their safety.
Overall, armored car insurance can help armored car services to protect their assets, mitigate risks, and comply with legal requirements. It can also help to build trust and reputation with customers.
What Type Of Insurance Do Armored Car Services Need?
While the specific type of coverage you'll need does depend on several factors - where your operation is located, the size of your business, the specific items you transport, etc. - there are key types of insurance coverage that all armored car businesses will need. Examples of the most vital policies include:
- Commercial Auto: Whether you own a single vehicle or an entire fleet of trucks, you'll need to carry commercial auto insurance. In the event that one of your armored cars is involved in an accident, the carrier of your commercial auto insurance will help to pay for any related expenses; damages to someone else's property, damages to the property you are transporting, and even medical care that third parties affected by the accident may face.
- General Liability: You'll also need to invest in general liability insurance, which covers third-party accident and injury claims. If a vendor were to slip on a puddle while making a delivery to the office you run your operation out of, suffer an injury, and file a lawsuit against you, this insurance would help to pay for the related expenses.
- Workers' Compensation: Drivers, office staff, and anyone else that works for your company, as an employer, you are responsible for providing your staff with a safe work environment. If an employee is involved in a work-related accident, workers comp will help to pay for the medical care they may require. It will also cover any wages that they may lose if they are unable to work while they're healing.
- Commercial Property: You'll also need to carry commercial property insurance. If the office you make appointments out of or the garage where your armored cars are parked is damaged in a fire, a pipe burst, a storm, or by an act of vandalism or theft, commercial property would pay for the related losses. Not only this policy cover losses to the physical structure of your commercial spaces, but it also covers any items within the buildings that may be lost; office equipment, employee possessions, etc.
The above-mentioned policies are just a few examples of the type of armored car insurance you'll need to carry as the owner and operator of an armored car company.
Armored Car's Risks & Exposures
Premises liability exposure is limited because access to the public is very restricted. The off-premises exposure is very high due to the possibility of armed robbery during the pickup, delivery, or transport of cash and other valuables.
Innocent bystanders may be injured during a confrontation between armed robbers and employees. Real or personal property of others may be damaged. All guards must have background checks, licenses to carry firearms, and regular recertification of firearm training.
Guards may be deployed to fill ATM machines, which could result in downtime to the client in the event of improper loading.
Personal injury exposures may include allegations of assault or battery or invasion of privacy.
Workers compensation exposure is severe due to the handling of valuables, which can be heavy and can be targeted by robbers. To prevent back injuries, guards must be trained in proper lifting techniques and provided with hand trucks.
Guards who pickup and deliver money and other valuable items and employees who count money at a central facility must be protected against armed robbery. Due to the potential for injury during attempted robberies, all drivers and guards should have body armor for protection.
Driving and time-schedule pressures increase the exposure to injuries from road accidents. Coin handling and wrapping can result in repetitive motion injury. Guards may suffer from stress due to the possibility of armed conflict and being confined in the back of the armored truck for much of the day.
Pre-employment physicals, including psychological evaluation, should be required. Slips, trips, and falls at the main location can be prevented by excellent housekeeping.
Repair facilities can result in cuts from auto repair tools, burns from welding, and respiratory ailments from inhalation of fuels and other contaminants. Proper safety equipment should be provided.
Property exposure is limited to electrical, heating and cooling systems at the office. Garages used for storing vehicles increase the exposure, particularly if the vehicles are serviced and fueled on premises. Smoking should be prohibited.
Inland marine exposure is from accounts receivable for billings to customers, bailees for the property of others in the service's care, communication equipment, computers, goods in transit, gun floater, and valuable papers and records. Adequate coverage for the high values of cash and other valuable items is generally available only through specialty markets.
Background checks on employees, proper procedures for handling customers' goods, and security during transport and while loading and unloading are all vital in preventing loss. Any storage of cash or valuable items on the premises should be in fireproof and burglar-resistant safes or vaults.
An escort vehicle may be needed if the value of items being transported is extremely high. Guards should verify amounts picked up and delivered with a signature from the client.
Crime exposure is from employee dishonesty, burglary, and robbery. Customers' goods normally will be covered under inland marine forms rather than crime. All vehicles transporting valuable items should be equipped with alarms, cameras, GPS, and two-way communication devices.
Background checks, including criminal history, should be performed on all employees handling money or other valuable items. There must be a separation of duties between persons handling deposits, billing, ordering, disbursements, and reconciling bank statements.
Outside audits should be conducted on a regular basis. If clients' property is kept on premises, security is critical and should include physical barriers such as steel doors and reinforced walls, surveillance cameras, and an alarm system that reports directly to a central station or the police department.
Commercial auto exposure is high. A heavy armored vehicle can inflict extensive damage to another vehicle and its passengers in the event of a collision. Drivers must have appropriate licenses and undergo special training in evasive maneuvering and the handling of the vehicle in heavy traffic and inclement weather.
Vehicles must be equipped with alarms, cameras, GPS, and two-way communication devices. Vehicles must be maintained on a regular basis, with records maintained at a central location. Should a vehicle be damaged in an accident, obtaining a replacement vehicle is expensive.
What Does Armored Car Insurance Cover & Pay For?
Armored car services can be sued for various reasons, including but not limited to:
Negligence: If an armored car service fails to exercise reasonable care in protecting valuables, they can be sued for negligence. For example, if a guard leaves the vehicle unattended or if the company fails to maintain security protocols.
Insurance protection: A general liability insurance policy can help cover legal fees, settlements, or judgments associated with negligence claims. The policy would help pay for the damages incurred by the plaintiff, up to the policy's coverage limit.
Breach of contract: If an armored car service does not fulfill the terms of a contract with a client, they can be sued for breach of contract. For example, if they fail to deliver valuables on time or to the agreed-upon location.
Insurance protection: Professional liability insurance, also known as errors and omissions (E&O) insurance, can help cover legal fees, settlements, or judgments associated with breach of contract claims. This policy would help pay for the financial losses the client experienced as a result of the breach, up to the policy's coverage limit.
Employee injuries: Armored car services may be sued if an employee is injured on the job due to unsafe working conditions or insufficient training.
Insurance protection: Workers' compensation insurance is designed to cover medical expenses, lost wages, and rehabilitation costs for employees injured on the job. This policy can also help protect the company from lawsuits related to workplace injuries by providing employer's liability coverage, which can help pay for legal fees, settlements, or judgments associated with such claims.
Vehicle accidents: Accidents involving armored cars can lead to lawsuits if the armored car service is found to be at fault for the accident, resulting in property damage or personal injury to third parties.
Insurance protection: Commercial auto insurance can help cover damages to third parties resulting from accidents involving company-owned armored vehicles. This policy may include coverage for property damage, bodily injury, and legal fees associated with accident-related lawsuits, up to the policy's coverage limit.
Theft or loss of valuables: Armored car services can be sued if they fail to protect valuables from theft or loss while in their possession.
Insurance protection: Inland marine insurance, or a specific armored car insurance policy, can help cover the loss or theft of valuables while in the care, custody, or control of the armored car service. This policy would help pay for the value of the stolen or lost goods, up to the policy's coverage limit, which can help mitigate the financial impact of a lawsuit related to theft or loss.
By having the appropriate insurance policies in place, armored car services can protect themselves from the financial burden of lawsuits and ensure their operations continue smoothly.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7381 Detective, Guard and Armored Car Service
- NAICS CODE: 561613 Armored Car Service
- Suggested Workers Compensation Code(s): 7720 Police Officers & Drivers, 8810 Clerical Office Employees NOC
Description for 7381: Detective, Guard and Armored Car Service
Division I: Services | Major Group 73: Business Services | Industry Group 738: Miscellaneous Business Services
7381 Detective, Guard and Armored Car Service: Establishments primarily engaged in providing detective, guard, and armored car services. Establishments primarily engaged in monitoring and maintaining security systems devices, such as burglar and fire alarms, are classified in Industry 7382.
- Armored car service
- Detective agencies
- Dogs, rental of: for protective service
- Fingerprint service
- Guard service
- Investigators, private
- Lie detection service
- Polygraph service
- Protective service, guard
- Security guard service
Armored Car Insurance - The Bottom Line
For more information on armored car insurance, speak with an experienced broker who specializes in commercial insurance and understands the unique exposures and high risks that armored car services face.
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Accounting
- Actuaries
- Answering Service
- Architects
- Armored Car
- Attorney Lawyer
- Auctioneer
- Auditor
- Background Music Services
- Bookkeeping
- Business Consulting
- Chemical Engineers
- Civil Engineers
- Claims Adjuster
- Commercial Laundries
- Commodity Broker
- Corporate Wellness
- Couriers
- Court Reporter
- Credit Bureaus
- Debt Collection Agency
- Draftsman
- Detective Agency
- Diaper Services
- Electrical Engineering
- Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- Funeral Directors
- HR Consultant
- Inspection Bureaus
- Insurance Agents & Brokers Insurance
- Interpreter
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Notary
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Safety Consultants
- Speakers Bureaus
- Stockbrokers
- Surveyor
- Tax Preparer
- Temporary Staffing
- Title Abstractors
- Valet Parking
- Specialty Consultants
- Specialty Service Business
The professional services industry, which includes occupations such as lawyers, doctors, accountants, and architects, often deals with sensitive and complex issues that carry a high risk of liability. These professionals are expected to provide their clients with expert advice and guidance, and any mistakes or oversights can result in significant financial consequences for both the client and the professional. This is where insurance comes into play.
Business insurance provides protection against the financial repercussions of potential mistakes or accidents that may occur while providing professional services. For example, a lawyer may make an error in their legal representation that leads to a financial loss for their client. Without insurance, the lawyer would be personally responsible for covering the cost of this loss. Insurance helps to protect professionals from these types of financial burdens and allows them to focus on providing high-quality services to their clients.
In addition to protecting against financial losses, commercial insurance can also provide legal defense for professionals facing legal action as a result of their work. This can be especially important for professionals in high-stress or high-risk fields, such as doctors or architects, who may be at a higher risk of being sued for professional negligence.
Overall, the professional services industry needs insurance to protect against financial losses and legal action, ensuring that professionals can continue to provide high-quality services to their clients without the added stress and burden of potential financial consequences.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
