In the business liability insurance industry, insurance solutions must be tailored to the unique risks, liabilities, and concerns of specific business operations. There are two business classes in particular – security staffing agencies and private investigator firms -- with very specialized risks, and these risks are often poorly understood by insurance agents.
In this guide, we’ll explore some of the unique liabilities security teams and private investigators face in their daily operations.
The Greatest Liabilities of Event Security Services
Whether an event venue has its own security team or contracts with a third-party security provider, the concept of event security is complex. For the most part, security guards must protect the wellbeing and safety of event attendees while attempting to mitigate any problems or situations that may lead to injury, property damage, or theft. These two factors can raise significant liability concerns; security personnel have a reasonable duty to protect guests, often requiring physical intervention.
Liabilities arise when a guest becomes injured through the actions or inaction of security staff, such as the use of excessive force on the part of security personnel or injuries resulting from insufficient or negligent security staffing and operations.
It’s important to understand that there are two major categories of liability to consider: direct liability, where the liability falls upon the person or persons committing an act, and vicarious liability, where employers or venue owners are held liable for the acts, actions, or inaction of security personnel hired to manage an event.
How to Reduce Event Security Liability
In order to mitigate some of the risk exposures and potential liabilities related to the event or venue security, it is critical that careful evaluation of numerous factors take place before hiring security guards. These factors include:
- Evaluation of capabilities and performance records of third-party security staffing companies.
- Training requirements for security guards, including proper use of force and non-physical intervention techniques.
- Liability insurance coverages; most event venues carry some form of liability insurance policies but may require security staffing companies to provide their own general and professional liability coverage.
- Ensuring that staffing is adequate for the expected number of event guests.
Private Investigators and Their Own Risk Exposures
Private investigators spend much of their time performing background checks on people and writing reports of their findings. It may come as a surprise, then, that what is commonly perceived as a low-risk profession has several significant liability exposures associated with it. Potential liability claims can include:
- Claims of invasion of privacy.
- Claims of confidentiality breaches.
- Claims of missing or ignoring important evidence that can lead a client to lose a claim against a third party.
- Bodily injury to someone involved in an investigation.
- Property damage arising from the investigator’s work, such as gaining access to premises during an investigation.
- Loss of personal data, including documents, photographs, and other personally-identifying information.
Private investigators and process servers should strongly consider some form of general or professional liability insurance. These insurance products are designed to protect the investigator if something were to go wrong during the course of an investigator’s work and a third party makes a claim against the investigator. Liability insurance typically provides coverage for legal costs such as those associated with lawsuits against an investigator and his or her private investigations company.
Specialized Insurance Protection for Security and Private Investigation Companies
Cochrane & Company is a leading provider of tailored liability insurance solutions for the security and private investigations/process servers industries. Insurance agents may obtain these exclusive MGA programs, which are highly regarded for their comprehensive coverage and competitive pricing. Visit us on Program Business online or call (855) 328-2307 to learn more about these valuable insurance protections for specialized businesses in the security and private investigation fields.