Security guards are relied on to protect property and lives, as well as deter crime. They are the first line of defense for businesses and property owners. This also places security guards and the companies that employ them at risk of getting sued.
No matter how experienced and skilled a security guard is, things can go wrong. The more clients a security company has and the longer they've been in business, the greater their exposure to a lawsuit. The potential damages awarded in these lawsuits can be substantial.
Among the types of coverage a security business should have, error & omissions (E&O) insurance is essential. E&O insurance covers damages claimed as the result of failure or negligence on the part of the security business or guard. It also covers legal defense expenses, no matter how baseless the lawsuit.
Even if a security guard performs his duties exactly as prescribed in his contractual agreement, he can still be sued for failure to prevent property loss, damage or injury. For example, a person is assaulted while the security guard's routine has him in a different location on the property. This is still a failure on the part of the security company. It can simply be claimed that their surveillance routines were inadequate.
Similarly, thieves can stow away on a freight truck that is making a delivery. It's not normally part of a guard's routine to thoroughly inspect the contents of freight deliveries. If the thieves are never caught, then this fact wouldn't be known and therefore couldn't be brought up in court.
The most skilled and experienced security guards can make mistakes. It is the nature of the security business that even a very small mistake can result in very large consequences. The most experienced security guard cannot be everywhere at once.
A successful security business can over extend itself during rapid growth. New employees must be quickly hired and because the hiring process isn't perfect, your agency can end up with less than perfect security guards.
As you can see, the scenarios that can result in a lawsuit are numerous. Not having E&O insurance means you have a gap in your protection that isn't covered by other forms of insurance. Don't allow the expenses of a lawsuit destroy your security business or your personal financial security. Make sure that you have E&O insurance.
Even security companies need extra security. Call Johnston & Associates Insurance at (615) 716-2123 for more information on Nashville business insurance.