Best Security Business Insurance

Running a security company means managing serious risks, from guard liability to vehicle accidents during patrol. NEXT ranked first in our security business insurance study with a MoneyGeek score of 4.63 out of 5, thanks to competitive rates and quality coverage options that protect security guard companies without straining your budget. 

We recommend comparing quotes from NEXT, The Hartford and Coverdash to find the best fit for your security operation's specific needs.

Note: We based all scores on a security business with two employees across professional liability, general liability, workers' comp and BOP policies.

Hiscox leads in affordability for security business insurance at $56 monthly ($671 annually). Security guard companies find Hiscox ranks first for general liability ($29 monthly) and BOP coverage ($44 monthly). For workers' compensation, NEXT offers the best rates at $49 monthly, followed closely by The Hartford and Thimble. The Hartford provides the cheapest professional liability coverage at $89 monthly, beating NEXT and Progressive Commercial for security service providers.

Hiscox offers the cheapest general liability insurance for security guard companies at $29 monthly ($354 annually). Security businesses save $111 monthly compared to the $140 industry average. Private security companies pay 79% less with Hiscox while getting specialized coverage built for security operations, from mobile patrol services to static guard posts.

NEXT provides the cheapest workers' comp insurance for security guard businesses at $49 monthly ($588 annually), beating the $52 industry average by $3 monthly. Security companies managing mobile patrol operations or multiple guard posts find strong alternatives through The Hartford ($50 monthly), Thimble and Simply Business, all priced within $1 of NEXT for covering your security service team.

Security guard companies get the cheapest professional liability insurance through The Hartford at $89 monthly ($1,070 annually), saving $11 monthly compared to the $100 industry average. NEXT ranks second at $92 monthly, followed by Progressive Commercial at $95 for private security firms needing errors and omissions protection.

Hiscox has the cheapest Business Owners' Policy for security guard businesses at $44 monthly ($530 annually), saving security companies $162 monthly compared to the $206 industry average. This BOP bundles general liability and property coverage at 78% below rates. Private security firms should consider alternatives like biBERK and The Hartford, both affordable options for protecting your office equipment and liability exposure.

In general, security business insurance costs are the following for the four most popular coverage types:

• General Liability: $140 on average per month, ranging from $121 to $163, depending on the state
• Workers' Comp: $52 on average per month, ranging from $45 to $61, depending on the state
• Professional Liability (E&O): $100 on average per month, ranging from $85 to $115, depending on the state
• BOP Insurance: $206 on average per month, ranging from $178 to $241, depending on the state

Security guard companies experience unique liability exposures from physical confrontations to client property damage that require specific insurance protection. Required coverage for security guards varies by state, but most security businesses need workers' compensation and general liability at minimum, with additional policies recommended based on whether you run mobile patrols, armed services or static guard posts.

• Workers' Compensation Insurance: Most states require workers' comp when you hire employees. Security guards experience physical risks during confrontations with trespassers, slip-and-falls on patrol routes and injuries from restraining individuals. It pays medical bills and lost wages when your guards get injured protecting client sites. Aim for limits covering your full payroll, as insurers calculate premiums based on guard classifications and total wages.
• General Liability Insurance: Clients require this coverage before awarding security contracts. General liability covers third-party injuries and property damage your guards cause, like breaking a client's storefront window during a pursuit or if your guard accidentally injures someone while breaking up a fight. Most security contracts require $1 million to $2 million in coverage per occurrence to bid on jobs.
• Professional Liability Insurance: Clients sue security companies when guards fail to prevent thefts, miss security breaches during rounds or respond improperly to emergencies. Professional liability covers legal defense and settlements when clients claim your security services caused them financial losses. Security firms carrying $1 million in coverage protect against lawsuits alleging negligent monitoring or inadequate response.
• Commercial Auto Insurance: Required by law when your security company owns vehicles for mobile patrols or transporting guards between sites. It pays for damages from accidents during patrol routes, rushing to alarm calls or when guards use company vehicles for site checks. Security businesses running patrol services need coverage matching their fleet size, $1 million combined single limit.
• Commercial Property Insurance: Protects office equipment, two-way radios, body cameras, uniforms and guard supplies from theft or fire damage. Security companies storing communication equipment, surveillance gear and response vehicles at your office need coverage matching total property value, usually $25,000 to $100,000 depending on equipment inventory and office size.
• Cyber Liability Insurance: Security firms store client access codes, patrol schedules, surveillance footage and building entry information that hackers target. Cyber liability covers costs from data breaches exposing client security details, ransomware locking patrol schedules or stolen alarm codes. Companies managing digital security systems should carry at least $1 million in coverage for breach notification and client damages.
• Umbrella Insurance: Adds liability protection beyond your primary policy limits when one incident exceeds standard coverage. Security companies handling armed guards at banks, providing nightclub security where fights occur or protecting large events with thousands of attendees benefit from $1 million to $5 million in umbrella coverage for catastrophic incidents like shootings or major injuries.

Security companies can find affordable coverage that protects their operations by following our step-by-step method for getting business insurance tailored to your security guard business.

Security guard companies need workers' compensation, general liability, professional liability and commercial auto to protect against guard injuries and client disputes. NEXT ranks best overall for security business insurance with competitive rates and strong customer service, while Hiscox delivers the lowest costs at $56 monthly. Compare quotes from both providers to find affordable coverage matching your security operation's specific risks.

We answer frequently asked questions about security business insurance:

We selected the best business insurer for security companies based on the following criteria:

• Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better the company performs.
• Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
• Coverage (15% of score): We scored business insurance providers for this category based on the flexibility, payment and actual coverage options.
• Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely companies are to pay out claims compared to the competition.

All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:

• Three-person business with two employees
• Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
• $150,000 in payroll
• $300,000 annual revenue