Retail Security Guard Insurance: Protecting Business from Theft & Liability
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 25
- 2 min read
Updated: Sep 29
Retail stores and shopping malls are bustling environments with constant foot traffic, valuable merchandise, and heightened risk of theft or disturbances. Security guard companies that serve these locations play a critical role in maintaining safety and order - but they also face significant liability.
Whether your firm provides armed or unarmed guards, loss prevention, or crowd control, having the right insurance coverage is essential. At Wexford Insurance, we specialize in providing tailored business insurance solutions for security guard companies across the United States - including those serving retail and mall environments.
General Liability Insurance
This is the foundation of protection for any retail or mall security firm. It covers third-party bodily injury, property damage, and legal defense costs.
Example:
If a guard accidentally injures a shopper during an altercation or damages store property, general liability insurance helps cover medical bills, repair costs, and legal fees.
Typical Premiums:
$2,750–$3,500 annually for low-risk operations.
Professional Liability Insurance (Errors & Omissions)
Professional liability insurance protects your business from claims of negligence or failure to perform duties.
Example:
If a store alleges your team failed to prevent a theft or mishandled a situation, this coverage helps with legal defense and settlements.
Typical Premiums:
$2,500–$3,000 annually.
Workers’ Compensation Insurance
Security guards face physical risks daily. Workers’ comp covers medical expenses and lost wages if an employee is injured on the job.
Example:
A guard strains their back while detaining a shoplifter—workers’ comp pays for treatment and recovery time.
Cost Estimate:
$0.75–$2.74 per $100 of payroll.
Commercial Auto Insurance
If your company uses vehicles for mall patrol or site visits, commercial auto insurance is essential. Personal auto policies won’t cover business use.
Example:
A guard gets into an accident while driving between retail locations—commercial auto insurance covers vehicle damage and liability.
Typical Premiums:
$1,500–$2,000 per vehicle annually.
Property Insurance
Security firms often operate from offices or store surveillance equipment. Property insurance protects against fire, theft, and vandalism.
Example:
If a fire damages your monitoring equipment or office space, this insurance helps cover replacement costs.
Estimated Cost:
$550–$800 annually for basic coverage.
Final Thoughts
Retail and mall security companies face unique challenges—from managing crowds to preventing theft and responding to emergencies. Without proper insurance, a single incident could result in costly lawsuits or operational downtime.
Whether you're a startup or an established firm, Wexford Insurance helps you stay protected and compliant. Contact us today to get a quote and secure your business.
