How to Choose the Right Business Insurance for Your Security Firm
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 26
- 3 min read
Updated: Sep 29
Running a security guard business comes with unique risks—whether you're managing armed guards, mobile patrols, or executive protection services. From property damage to personal injury claims, the right insurance coverage is essential to protect your company, your employees, and your clients.
In this guide, we’ll walk you through how to choose the right business insurance for your security firm—and how Wexford Insurance can help you stay protected and compliant.
Why Security Firms Need Specialized Insurance
Security companies operate in high-risk environments. Guards often face confrontations, make split-second decisions, and work in settings where accidents or legal claims can arise quickly. Without proper insurance, a single incident could lead to devastating financial losses or even force your business to shut down.
Additionally, many clients require proof of insurance before signing contracts, and some states mandate specific coverage types for licensing.
6 Essential Insurance Policies for Security Guard Companies
Here are the core insurance types, every security firm should consider:
Covers third-party bodily injury, property damage, and legal defense costs. For example, if a guard accidentally injures a bystander or damages a client’s property, this policy helps cover the expenses.
💡 Required in most states and often a prerequisite for licensing.
💰 Estimated cost: $2,750–$3,500/year for low-risk operations2.
2. Professional Liability Insurance (Errors & Omissions)
Protects your firm from claims of negligence, failure to perform duties, or mistakes in judgment. This is especially important for executive protection and investigative services.
💰 Estimated cost: $2,500–$3,000/year2.
Covers medical expenses and lost wages if an employee is injured on the job. Required in most states if you have employees.
💡 Essential for both armed and unarmed guards.
💰 Premiums vary based on payroll, location, and risk level.
If your firm uses vehicles for patrols or transport, personal auto insurance won’t cover business use. Commercial auto insurance protects against accidents, theft, and liability.
💰 Estimated cost: $1,500–$2,000/year per vehicle2.
5. Business Owner’s Policy (BOP)
Bundles general liability and commercial property insurance at a discounted rate. Ideal for small to mid-sized firms with office space or equipment.
Provides additional liability coverage beyond the limits of your other policies. Useful for high-risk operations like armed security or large-scale events.
How to Choose the Right Coverage
When selecting insurance for your security firm, consider the following:
Services Offered: Armed guards, mobile patrols, and executive protection all carry different risk levels.
Client Requirements: Some contracts may require specific coverage limits or endorsements.
State Regulations: Licensing boards often mandate minimum insurance requirements.
Business Size: Larger teams and multiple vehicles increase your exposure and premium costs.
Claims History: A clean record can help you secure better rates.
Why Choose Wexford Insurance?
At Wexford Insurance, we specialize in providing tailored insurance solutions for security guard businesses across the U.S. Whether you run a small neighborhood patrol or a nationwide executive protection firm, we offer:
General Liability
Workers’ Compensation
Commercial Auto
Custom packages for armed and unarmed services
Final Thoughts
Choosing the right business insurance for your security firm isn’t just about compliance—it’s about protecting your team, your clients, and your future. With the right coverage in place, you can focus on growing your business while Wexford Insurance handles the risk. Contact Wexford Insurance today!
