The market for security guard business insurance continues to narrow as carriers exit the class or sharply limit participation, reducing placement options across the board. Coverage demand remains steady, but placing security guard risks now requires a more deliberate approach. Broad market access alone no longer delivers continuity or consistency at renewal.
Brokers skilled in the excess and surplus (E&S) market find new opportunities as non-renewals rise and underwriting tightens. Specialized security programs offer a clear path, rewarding disciplined risk evaluation, targeted placement, and strong market ties. These programs allow brokers to deliver stable coverage despite shrinking traditional options.
Why Security Guard Risks Are Challenging in Today’s Market
Security guard operations combine several high-severity liability exposures. Carriers now focus on how quickly losses can escalate, especially with physical confrontations, judgment calls, or third-party injuries.
Several factors continue to drive underwriting pressure in this class:
- High-severity assault and use-of-force exposure. Allegations involving restraint decisions, escalation, or failure to intervene often involve subjective interpretation, driving higher defense costs and settlement potential.
- Operational complexity across service types and environments. Armed and unarmed operations, combined with work across habitational, retail, construction, and government settings, introduce varied contractual obligations and liability profiles.
- Litigation-driven loss severity. Rising defense expenses and claim severity continue to push loss costs higher across liability-driven classes, reflecting liability inflation driven by litigation behavior rather than economic inflation alone.
These pressures have translated into stricter underwriting thresholds, reduced capacity, and a smaller pool of markets willing to consistently write security guard risks.
What Brokers Evaluate When Placing Security Guard Risks
As options shrink, brokers need programs that support all of a firm’s operations, preventing fragmented coverage or gaps. The goal has shifted from simply finding capacity to ensuring long-term placement suitability.
Key considerations include:
- Operational breadth under a single policy: Programs that accommodate multiple service types reduce the need for layered placements that complicate claims and renewals.
- Alignment for higher-risk services: A clear appetite for armed operations, executive protection, and off-duty officer exposures helps avoid last-minute restrictions or coverage adjustments.
- Acceptance of specialized operations: Canine units, training facilities, and other specialty services introduce unique liability considerations that not all markets are willing to accept.
- Nationwide availability and carrier commitment: Multi-state operations benefit from a consistent program structure, supported by carriers with the financial strength and intent to remain in the class.
How Specialized Programs Support Broker Placement Strategies
Specialized programs give brokers a structured way to intentionally place security guard risks, not improvise. Rather than forcing complex operations into general underwriting, these programs reflect real security firm practices for contract-driven roles, use-of-force risks, and varied deployments. This alignment lets brokers present risks clearly, reduces underwriting friction, and avoids fragmented solutions that weaken coverage.
Cochrane & Company offers security guard insurance programs structured around these operational and liability realities. By pairing security-focused underwriting guidelines with long-term carrier participation, we provide brokers with a placement framework that withstands a tightening market, reducing disruption at renewal and supporting long-term account retention.
Helping Clients Navigate a Contracting Market
As options narrow, timing and preparation drive placement outcomes. Early brokers can address operational changes, resolve underwriting questions before renewal pressure, and reduce disruption from carrier exits. Tailored security-targeted programs give these discussions traction by mirroring litigation trends, helping brokers set expectations and base placements in coverage that supports daily operations.
With fewer options, the right partner matters. Cochrane & Company helps brokers assess placements after carrier exits and tightening. By pairing underwriting discipline with long-term market commitment, Cochrane & Company helps brokers retain business and manage rates with confidence.
If you’re ready to turn non-renewals or shrinking options into opportunities, connect with Cochrane & Company to discuss current security guard placements and explore available program solutions.
Security Guard Insurance FAQ
Why are insurers exiting the security guard market?
Insurers continue to reassess security guard risks due to high-severity loss potential, expanding liability exposure, and rising defense costs. Litigation trends and contract-driven responsibility have made outcomes harder to predict, prompting many carriers to reduce capacity or exit the class.
Is assault and battery coverage still available for security companies?
Yes, but availability depends on how the risk is structured and presented. Markets closely evaluate use-of-force policies, training protocols, supervision, and claims history. Programs built specifically for security operations are better positioned to address this exposure.
How are off-duty officers and executive protection exposures evaluated?
These services often fall outside standard security classifications and receive heightened underwriting scrutiny. Carriers assess the scope of duties, authority, training standards, and contractual obligations to determine fit.
What makes a security guard risk more attractive to underwriters?
Clear contracts, defined scopes of work, documented training standards, disciplined incident reporting, and proactive broker engagement all improve underwriting outcomes. Early placement through security-focused programs can also reduce friction and improve renewal stability.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.