Broking opportunity: Insurance for the security industry

Businesses viewed as a part of the the Security Industry have traditionally been considered to be a ‘high risk’ – therefore obtaining the right insurance cover at a price that makes sense has proved to be complicated.

According to the Managing Director of Safe Hands Insurance, Phillip Carr many insurance providers quote on perceived risk rather than real risk when it comes to security firms, which is why premiums are sometimes priced higher than they should be.

“That’s why you need a broker who understands the security industry and understands security industry insurance,” says Carr.

While under insurance of businesses is certainly not uncommon in Australia, the higher premiums often faced by security firms mean they are even more likely than other businesses to be not covered or not covered adequately by insurance. Specifically, for the security industry, this can mean they’re underinsured for aspects such as:

• Motor vehicle loss or damage
• Public and products liability
• Professional indemnity
• Workers compensation
• The loss or damage of portable items, such as video and photographic equipment, radios and computers
• Fidelity
• Income protection
• Life, trauma or total permanent disability protection

“While out of the box insurance solutions are sometimes adequate, it’s important that security industry firms choose an insurance broker that can customise solutions for their unique business and their unique risk exposures,” Carr adds.

A business in the security industry may need liability and indemnity cover higher than the standard $10 or $20 million offered. They may need insurance to cover for the negligent loss of keys or to pay for new locks. Or they may need to extend cover to insure for the loss of someone else’s money or property from a safe, or to insure for fines or penalties for an inadvertent breach of legislation, or even for engaging subcontractors.

Carr says the needs of the security industry are unique and require an insurance broker who can manage those needs.