40+ key insurance terms every security company owner should understand.
Reference
Security Guard Insurance Glossary
The insurance industry uses specialized terminology that can be confusing for security company owners and managers. This glossary defines the most important terms you will encounter when purchasing, managing, and using your security company insurance program.
Coverage Terms
General liability covers third-party bodily injury and property damage. Professional liability, also called errors and omissions, covers claims of negligent security services. Workers' compensation covers employee injuries on the job. Commercial auto covers vehicles used in business operations.
Assault and battery insurance covers physical confrontation claims that general liability excludes. Firearms liability covers incidents involving security guard weapons. Umbrella or excess liability provides additional limits above primary policies. Employment practices liability covers employment-related claims from employees.
Cyber liability covers data breaches and technology-related claims. Commercial property covers your physical business assets.
Policy Terms
Per occurrence limit is the maximum the insurer will pay for a single incident. Aggregate limit is the maximum paid during the entire policy period. Deductible is the amount you pay out of pocket before insurance kicks in. Self-insured retention is similar to a deductible but requires you to handle the claim directly up to the retention amount.
Additional insured is a party added to your policy who receives coverage for claims arising from your operations. Certificate of insurance is a document proving your coverage exists. Waiver of subrogation prevents your insurer from recovering from a specified party. Primary and non-contributory means your policy pays first, before the additional insured's own insurance.
Industry-Specific Terms
BSIS refers to California's Bureau of Security and Investigative Services, the state regulatory body. DCJS refers to New York's Division of Criminal Justice Services. DPS refers to the Texas Department of Public Safety.
PPO is a Private Patrol Operator license required in California. Guard Card is the basic security guard license issued by the state. Firearms Permit is the additional authorization required for armed guards.
Negligent security is a legal theory alleging that inadequate security measures contributed to a crime or injury. Use of force refers to the physical actions a guard takes to control a situation. De-escalation is the process of resolving a confrontation without physical force.
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