Specialty Security Risks And Equipment Insurance

Insurance coverage on armored car services is difficult to place because of the hazardous nature of their operations and the services provided. Pick-up and delivery of money and securities, gold bullion, and other precious metals and valuables expose both the vehicle and its drivers and attendants to significant losses. The cargo that armored car services carry is valuable and difficult to underwrite and insure.

The insurance industry strongly encourages its clients to purchase a variety of safety equipment, but few insurance companies are willing to insure safety equipment providers. Manufacturers, distributors, and businesses that install and service fire extinguishers, burglar alarms, sprinkler systems, and ventilation hoods with extinguishing systems for restaurants often find that only specialty markets can arrange coverage for their unique exposures and needs.

Courier and messenger services present significant automobile-related exposures because their vehicles operate almost nonstop in urban areas during normal working hours. In addition to auto exposures, couriers and messengers may also use bicycles, skates, or other means on sidewalks that create workers compensation and general liability-related exposures. Each risk must be considered carefully and cautiously. Premiums and deductibles depend on the operation's size, the area served, and the type of vehicles used. Older vehicles are usually subject to mandatory inspections.

These are service contractors that sell, service, install and repair fire protection and suppression systems such as sprinklers, extinguishers, fire extinguishing systems, grease cleaners, and wet chemical fire suppression. Package programs are available that cover general liability, products liability, and errors and omissions. Some also cover incidental alarm installation.

Law enforcement officer or police professional liability coverage forms or policies provide broad coverage to law enforcement agencies and their individual law enforcement officers. They cover the law enforcement agency of any political subdivision named as the insured, along with all paid full-time and part-time individual law enforcement officers. This coverage insures against third-party suits or claims for bodily injury liability and personal injury liability, including legal defense against such actions. Acts such as false arrest, erroneous service of civil papers, false imprisonment, libel, slander, defamation of character, violation of property rights, and assault and battery in the course of making an arrest are covered. This coverage can be purchased by only law enforcement agencies-not individual officers.

This coverage protects the insured when confidential information belonging to clients, employees or vendors is breached because of an alleged error on the insured's part. Coverage is provided for both defense and indemnification. Coverage also includes the cost to notify affected individuals.

The privatization of the prison correctional system in the United States is well established. Local, state, and federal authorities often turn to private industry to provide correctional services. Coverages available include commercial general liability, products/completed operations liability, medical malpractice, and errors and omissions. These coverages are usually written on a claims-made basis and errors and omissions coverage usually covers violations of civil rights.

Liability coverage for security patrol and detective agencies is available from primarily excess and surplus lines markets and specialty coverage programs. Underwriters pay close attention to employee training, use of firearms, the exact type or nature of patrol work performed, use of guard dogs, and previous losses. Premium is based on payroll and coverage is subject to a deductible. Some underwriters and programs include professional liability coverage and personal injury liability coverage.

Following are some examples of Specialty Security Risks And Equipment Insurance claims and the corresponding insurance coverages that can help pay for them:

1. Drone Malfunction: Let's imagine a security company specializing in aerial surveillance using drones. One day, one of their drones malfunctions and crashes into a client's property, causing significant damage. The client could sue the security company for the property damage and any related losses. Specialty Security Risks and Equipment Insurance could cover the lawsuit expenses, including any potential settlement or judgment, up to the policy limits.

2. Breach of Security System: A security firm installs a state-of-the-art security system for a high-end jewelry store. However, due to a flaw in the security system, a burglary occurs, resulting in the loss of millions of dollars' worth of merchandise. The store owners may decide to sue the security firm for negligence and the financial loss incurred. Specialty Security Risks and Equipment Insurance would cover the costs associated with defending the lawsuit and any subsequent damages awarded by the court.

3. Personal Injury from Security Equipment: A company that manufactures security equipment, such as automatic gates, could face a lawsuit if a malfunctioning gate injures someone. The injured party could claim compensation for medical expenses, lost wages, and other associated costs. Specialty Security Risks and Equipment Insurance would cover the legal expenses associated with the claim and the compensation, if the insured is found liable.

4. Data Breach: A cybersecurity firm provides firewall and data protection services to a financial institution. Despite their efforts, a sophisticated hacking attack breaches the system, resulting in a major data leak. The financial institution could sue the cybersecurity firm for failing to adequately protect their data. In this case, Specialty Security Risks and Equipment Insurance would cover the costs associated with the lawsuit and any damages awarded, offering financial protection to the cybersecurity firm.

5. Failure of Surveillance Cameras: A company that installs and maintains surveillance cameras could face a lawsuit if a crime occurs at a client's premises due to camera failure. If the client can prove that the crime could have been prevented or evidence could have been gathered if the cameras had been functioning properly, they might sue for damages. Specialty Security Risks and Equipment Insurance would cover the costs of the lawsuit and any damages awarded, ensuring the surveillance company's financial stability.