How to Start a Private Investigation Business Legally
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 26
- 2 min read
Updated: Sep 29
Starting a private investigation (PI) business or executive protection firm can be a rewarding venture for professionals with backgrounds in law enforcement, military, or security. However, due to the sensitive nature of the work, launching such a business requires strict legal compliance, proper licensing, and comprehensive insurance coverage.
Here’s a step-by-step guide to help you start your Private Investigation business legally and protect it with the right insurance from Wexford Insurance.
1. Understand the Role of a Private Investigator
Private investigators offer services such as:
Surveillance and background checks
Fraud and theft investigations
Locating missing persons
Legal support for attorneys
Executive protection and bodyguard services
These services often involve handling sensitive data and operating in high-risk environments, making legal compliance and liability protection essential.
2. Meet Licensing Requirements
Licensing is regulated at the state level, and requirements vary. Most states require:
Minimum age (usually 21)
U.S. citizenship or legal residency
Relevant experience (2,000–6,000 hours) or a degree in criminal justice
Clean criminal background
Fingerprinting and background checks
Passing a licensing exam
Proof of liability insurance or surety bond (typically $5,000–$50,000)
3. Register Your Business
Choose a legal structure (LLC, corporation, etc.) and register your business with the Secretary of State. You’ll also need:
A business bank account
Local permits or business licenses
This step ensures your business is recognized legally and can operate in your state.
4. Get the Right Insurance Coverage
Because of the legal and physical risks involved, business insurance is non-negotiable for PI and executive protection firms. Wexford Insurance offers tailored policies including:
General Liability Insurance – Covers third-party injury or property damage
Professional Liability (E&O) – Protects against negligence or failure to perform duties
Workers’ Compensation – Covers employee injuries during surveillance or protection
Commercial Auto Insurance – For vehicles used during investigations or client transport
Umbrella Insurance – Adds extra liability protection for high-risk operations
5. Invest in Tools and Technology
To operate effectively, you’ll need:
Surveillance equipment (cameras, GPS trackers)
Secure communication tools
Case management software
Cybersecurity tools for data protection
6. Market Your Services
Build a professional website and optimize it with SEO keywords like:
“How to start a private investigation business”
“Executive protection startup guide”
“Private investigator licensing USA”
“PI business insurance”
“Bodyguard company legal requirements”
Also, network with law firms, insurance companies, and corporate clients. Join industry associations like NCISS or ASIS International for credibility and referrals.
Final Thoughts
Starting a private investigation or executive protection business is more than just having investigative skills—it’s about operating legally, ethically, and safely. With the right licensing and insurance from Wexford Insurance, you can protect your business and build a trustworthy brand.
👉 Contact Wexford Insurance to get a quote and ensure your Private Investigation business is fully protected from day one.