Not the usual topic I post about but an important one. For the last couple of weeks I’ve been involved in reviewing and, where necessary updating our various company insurance policies to ensure we are fully covered for the services we provide. Any business operating within the security sector needs to have specific insurance in place. This will make sure you are protected and covered. A standard insurance package will likely not cover you correctly. You will need special security insurance(s), which will depend on your services.
On the surface, this sounds like a relatively straightforward process however, once you get into the detail, its reasonably complicated, especially when changing to a new provider or adding additional services to existing cover. I have reasonable knowledge of insurance but not for a small/medium-sized security company, so it was an excellent learning opportunity. During the process, I identified several key points I thought worth sharing with anyone undertaking a similar task.
- identify a good broker, and suggest one that comes with a trusted recommendation
- involve the various company SME’s in each requirement as they will have significant input e.g. cyber
- ask questions even if you think they are not essential – no question is stupid if you don’t know the answer
- review what cover you have in place. Does it still cover you for what you do, and is the insurer fully aware of your services (new and old) and associated activities
- getting one provider to ‘cover all’ requirements is very unlikely and may not give you the best cover or price, especially regarding liability and indemnity cover
- break down each element you require covered; this will ensure nothing is missed – we ended up with multiple policies including – Employment Liability, Professional Indemnity, Director & Officer, business interruption and office contents, specialist all risk over (equipment), travel and cyber
- as with all insurance, ‘the devil is in the detail’, leave no stone unturned and know precisely what is/isn’t covered. For certain types of cover, it’s possible to reduce costs without including certain elements of cover e.g. Employment Practices Liability (EPL), in the D&O cover, but this is arguably the most critical element as it protects D&O’s against a claim made against them personally, such as discrimination, harassment, unfair dismissal etc. as well as 3rd Party claims – understand what each part of the cover provides before finalising cover
- if you use contractors, clarify whether they are covered under your policies
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