What clients require in security service contracts and how to structure your insurance program to win bids and maintain compliance.
Guide
Insurance Requirements in Security Contracts
Security service contracts almost always include detailed insurance requirements that your company must satisfy before guards can be placed on site. Understanding these requirements, anticipating common demands, and structuring your insurance program to meet them is critical for winning contracts and maintaining client relationships.
Common Contract Requirements
Most security service contracts specify minimum insurance limits for general liability, professional liability, workers' compensation, and commercial auto. The most common minimum is $1,000,000 per occurrence and $2,000,000 aggregate for general liability, with higher limits for large accounts.
Additional insured requirements are nearly universal, meaning the client must be named on your general liability policy as an additional insured. Waiver of subrogation and primary and non-contributory language are also frequently required.
Meeting High-Limit Requirements
Large contracts with property management companies, hospitals, universities, and government agencies often require $5,000,000 or $10,000,000 in total liability limits. These limits are achieved through an umbrella policy layered above your primary general liability and professional liability.
We help security companies structure their insurance programs so that meeting high-limit requirements is straightforward and certificates of insurance can be issued quickly when contracts are awarded.
What to Watch For
- ●Indemnification clauses that shift all liability to the security company
- ●Hold-harmless agreements that may exceed your insurance coverage scope
- ●Exclusions for specific types of incidents that your policy should cover
- ●Training and certification requirements that affect your insurance program
- ●Reporting obligations for incidents that trigger insurance claims
- ●Certificate holder requirements and notice of cancellation provisions
Frequently Asked Questions
Related Resources
Certificate of Insurance Guide for Security Companies
How certificates of insurance work for security companies. Additional insured requirements, waiver of subrogation, and managing COI requests from clients.
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