Armed vs. Unarmed Security Insurance: How Coverage Differs
- Jun 4
- 5 min read
If you own a security company, one of the biggest insurance questions you'll face is whether your guards are armed or unarmed. That distinction affects your risk level, the types of claims you may face, and the insurance coverage your business needs.
Understanding armed vs. unarmed security insurance is important because insurers evaluate these operations very differently. Whether you're starting a new security business or reviewing your current policies, knowing how coverage differs can help you make better decisions and avoid costly gaps.
Why Armed and Unarmed Security Businesses Are Insured Differently
Insurance companies look at risk when determining coverage options and premiums. Armed security firms generally face higher risks because employees carry firearms while performing their duties.
When a guard is armed, there is an increased possibility of incidents involving:
Firearm discharge
Bodily injury claims
Wrongful death allegations
Excessive force accusations
Civil lawsuits related to weapon use
Unarmed security companies still face liability risks, but the severity of potential claims is often lower. Because of this difference, insurers usually evaluate armed and unarmed operations separately.
Armed vs. Unarmed Security Insurance: How Coverage Differs
The primary difference between armed and unarmed security insurance is the level of liability exposure involved.
General Liability Requirements
Both armed and unarmed security companies typically carry general liability insurance. This coverage may help protect the business if a third party alleges bodily injury, property damage, or certain personal injury offenses.
For example:
A visitor trips over security equipment.
A guard accidentally damages a client's property.
A customer alleges negligence related to security services.
While both types of companies need this coverage, armed security firms often require higher liability limits because claim severity may be greater.
Professional Liability Exposure
Professional liability insurance, sometimes called errors and omissions insurance, is often critical for security companies.
This coverage may help when clients claim:
Failure to provide contracted services
Inadequate security measures
Negligent supervision
Failure to prevent a loss
Armed security companies may face additional scrutiny because decisions involving weapons can increase legal complexity and claim costs.
Firearms Liability Considerations
One of the biggest differences involves firearms liability coverage.
Many standard security guard insurance policies may exclude firearm-related incidents unless specific endorsements or specialized coverage are added.
Armed security companies should carefully review:
Firearms exclusions
Use-of-force provisions
Weapons training requirements
Employee qualification standards
Without the proper endorsements, a business may discover that firearm-related claims are not handled the way it expected.
Workers' Compensation Risks
Workers' compensation insurance is typically required in most states when employees are hired.
Both armed and unarmed guards face workplace hazards, including:
Physical altercations
Assaults
Slip-and-fall injuries
Vehicle accidents
However, armed guards often work in higher-risk environments such as:
Cash transport operations
High-value asset protection
Sensitive facilities
High-crime areas
As a result, workers' compensation classifications and pricing may differ.
Coverage Types Both Security Businesses Commonly Need
Whether your guards carry firearms or not, most security companies benefit from a strong insurance program.
Common coverages include:
General liability insurance is often the foundation of a security company's insurance package. It may help address third-party bodily injury and property damage claims.
Professional liability coverage may help protect against allegations that your services failed to meet contractual or professional standards.
If employees drive company vehicles or travel between client locations, commercial auto insurance is usually necessary.
Coverage may apply to:
Company-owned vehicles
Certain hired vehicles
Certain non-owned vehicles used for business
Workers' compensation typically helps with employee injury expenses and lost wages following covered workplace injuries.
Requirements vary by state and business structure.
Cyber Liability Insurance
Many modern security companies use:
Surveillance systems
Access control software
Cloud-based reporting
Client databases
Cyber liability insurance may help respond to certain data breaches and cyber incidents.
What Makes Armed Security Insurance More Complex?
Armed security operations usually face additional underwriting requirements before coverage is offered.
Insurance providers may evaluate:
Firearms training programs
Employee screening procedures
Licensing compliance
Written use-of-force policies
Management experience
Incident reporting systems
Some insurers may require documentation proving that guards receive ongoing training and maintain current certifications.
The more organized and documented your safety program is, the more attractive your company may appear to insurance underwriters.
Factors That Affect Security Guard Insurance Costs
Many business owners ask whether armed security insurance costs more than unarmed security insurance.
In most situations, armed operations tend to have higher insurance costs because of increased liability exposure. However, no two businesses are identical.
Factors that may affect pricing include:
Armed versus unarmed services
Number of employees
Payroll size
Annual revenue
Claims history
States of operation
Types of clients served
Contract requirements
Vehicle usage
Training and safety programs
Costs vary widely by business, state, carrier, and coverage selections. A licensed insurance agent can provide guidance based on your specific operation.
Common Claims Faced by Security Companies
Understanding common claims can help business owners choose appropriate coverage.
Claims More Common in Unarmed Security Operations
Examples may include:
Negligent supervision allegations
Failure to monitor property
Slip-and-fall incidents
Property damage claims
Wrongful detention allegations
Claims More Common in Armed Security Operations
Examples may include:
Firearm-related injury claims
Excessive force allegations
Wrongful death lawsuits
Weapons discharge incidents
High-value liability claims
While these risks differ, both types of businesses face significant legal exposure and should review coverage carefully.
How to Choose the Right Security Company Insurance
The right insurance program depends on your actual services, not just your company name.
When reviewing coverage, ask:
Do employees carry firearms?
Are guards stationed at fixed locations or mobile patrol routes?
Do contracts require specific liability limits?
Are vehicles used regularly?
Are subcontractors involved?
Are services provided across multiple states?
A thorough review can help identify potential gaps before a claim occurs.
Business owners should also work with an insurance professional who understands the security industry. Security firms face unique liability concerns that may not be fully addressed by standard business insurance policies.
Risk Management Tips for Armed and Unarmed Security Companies
Insurance is only one part of protecting your business.
Strong risk management practices can help reduce claims and improve insurability.
Consider implementing:
Background checks for all employees
Ongoing training programs
Written operating procedures
Incident documentation protocols
Client contract reviews
Regular safety meetings
Vehicle safety programs
Compliance audits
For armed security firms, firearms training and documented use-of-force procedures are especially important.
Helpful Resources for Security Business Owners
Security company owners can learn more about workplace safety and business risk management from these trusted organizations:
Occupational Safety and Health Administration (OSHA): https://www.osha.gov
U.S. Small Business Administration (SBA): https://www.sba.gov
These resources provide educational information on workplace safety, compliance, and business operations.
FAQs
Do armed security guards need different insurance than unarmed guards?
In many cases, yes. Armed security operations often require specialized coverage considerations because firearm-related risks may not be included in every standard security insurance policy.
Is armed security insurance more expensive?
Often, armed security companies face higher insurance costs due to increased liability exposure. Actual pricing depends on many factors, including operations, claims history, location, and coverage limits.
What insurance is required for a security company?
Requirements vary by state and business structure. Many security firms carry general liability, workers' compensation, professional liability, and commercial auto insurance.
Does general liability insurance cover firearm incidents?
Not always. Some policies may contain exclusions or limitations involving firearms. Coverage depends on policy language and endorsements.
Can unarmed security companies still face lawsuits?
Absolutely. Claims involving negligence, inadequate security, property damage, or wrongful detention can occur even when guards do not carry weapons.
Get a Free Security Insurance Quote
Whether your company provides armed protection, unarmed guard services, mobile patrols, or a combination of security solutions, having the right coverage matters. Every operation faces unique risks, and insurance needs can vary significantly from one business to another.
Wexford Insurance can help you review your exposures, understand available coverage options, and build an insurance program tailored to your security business.
Contact Wexford Insurance today at 317-942-0549 or visit www.wexfordins.com to request a free quote and speak with a licensed agent about your specific needs.
