Insurance Cost for a Security Guard Business: What Impacts Your Premium?
- 5 hours ago
- 2 min read
Running a security guard business comes with unique risks that directly influence insurance costs. From employee safety to client protection, understanding what impacts premiums is essential to securing affordable and adequate coverage for your protection company.
1. Type of Security Guard Services
The type of services your security guard business offers is a major factor in insurance costs. Armed security teams or mobile patrols are considered higher risk than unarmed or static guards. Event security, executive protection, and alarm response services also increase liability exposure. Higher-risk services typically result in annual premiums ranging from $10,000 to $25,000, while lower-risk operations may cost $2,500–$6,000.
2. Number of Employees and Payroll
Insurance providers consider the size of your workforce when calculating premiums. More employees mean greater exposure to workplace injuries or claims, especially if guards are armed or operate vehicles. Payroll also influences workers’ compensation insurance costs. For example, a small team may pay $2,500–$5,000 annually, while larger security firms with 50+ employees could see premiums exceeding $20,000 per year.
3. Security Guard Claims History and Risk Management
Your security guard business’s past claims history plays a crucial role in premium calculations. Frequent or high-value claims indicate higher risk and can drive up insurance costs. Implementing strict safety protocols, regular training, and background checks for guards can reduce risk and lower premiums. Many insurers offer discounts of 10–20% for companies with proven risk management programs.
4. Security Guard Coverage Limits and Policy Types
Higher coverage limits provide better protection but increase premiums. For general liability, many security guard businesses carry $1–5 million coverage depending on the size of contracts and clients served. Adding professional liability or cyber liability coverage for sensitive client information also raises costs but ensures comprehensive protection.
5. Security Guard Location and Client Contracts
Where your security guard business operates and the types of clients you serve also affect premiums. Urban areas with higher crime rates generally result in higher premiums. Clients with strict contract requirements may require higher insurance limits, further impacting costs.
Partnering with a specialized insurance provider simplifies the process. Wexford Insurance understands the unique risks of security guard operations and can provide a tailored quote for your business. Request your personalized quote today at Wexford Insurance to protect your company while optimizing costs.
