There are a multitude of insurers out there that can cover crowd control activities. Some of these insurers have a good policy and some have policies that are not so good or suitable for an individual business.
So take into account these 5 tips to help you in getting the appropriate cover for your activities.
1: Choose your Broker Wisely
Like anything else in this world, you get what you pay for… the biggest problem you will have when it comes time to select an insurer to protect your crowd control activities will occur when it comes time for your broker to start looking at policies and giving you advice in relation to the differences in cover.
Many brokers are extremely competent in dealing with and advising on insurance risks for most small to medium sized businesses; however when it comes to security industry insurances… well, most brokers do not know where to start looking. It is quite simply, the security industry is extremely specialised and so are the insurance policies that go with it.
2: Checking your Inclusions and Exclusions in your Policy
Some insurance policies that cover crowd control will only cover venues that close before 1am.
That doesn’t mean that you can’t lodge a claim for any incident that happens after 1am; it means that if that venue closes after 1am then there is no cover for that venue at all.
Other insurers exclude:
Any venue that has a dance floor and special lighting (most pubs),
- Dance parties
- The use of subcontractors.
- Deliberate acts
- Nightclubs
- Organized rallies or protests
You know that crowd control is one of the riskiest activities that a security company can engage in so why would you leave yourself exposed in the riskiest field without the proper protection for your company?
3: How much can you afford to Risk?
It all comes down to your appetite for risk, if you are looking after a few small pubs with your own guards (no subbies) and they close well before 1am… these policies would be fine to cover you.
But make sure you ask your broker (the person who may have to keep the wolves from your door) these questions:
- Does this policy suit my business and is it the best product for me?
- Who are the other insurers that you contacted?
- What are the pitfalls in my policy compared to others on the market?
- In the event of a claim, what is my excess and how will my claim be managed?
Maybe these things don’t seem important with all the other things you have on your plate such as: dealing with clients, rostering guards, changing the roster not to mention all the compliance issues and incident reports from last weekend… but can you afford to have an inferior policy? Leading to a $50,000 claim that is uninsured!
4: Do you Trust your Broker?
You need to be 100% comfortable that your broker has set the best policy possible for you; not just the cheapest and easiest to obtain.
The price will become meaningless if you get sued for $100,000 only to find out that your insurance policy will not respond.
5: Does your Broker have Security Industry Experience?
Not all Brokers are the same… General Insurance Brokers will get you the best policy for your car, house, a retail store or even the local sandwich shop.
When it comes to Security however… every week there can be hundreds of claims that go through the insurers that get declined because of an exclusion in the policy that does not cover the activities.
Your Broker needs to have experience in the industry and understand not only the logistics, but the legalities and day to day activities of security companies.
They also need to know ALL the inclusions, exclusions and how the policy works to advise you properly of the best policy for your activities.
ABOUT US
I am an insurance broker that specialises in the field of security liability.
I came from the security industry having worked as a crowd controller from the age of 18 in some of Sydney’s largest venues, before serving in the Australian Army then joining the insurance industry after the completion of my service.
I hold a current NSW Security license class 1ABCF and 2AB and can assist with any enquiries that you may have in relation to insurance cover for security activities.
With the hundreds of claims that I have seen cross my desk, the vast majority of them insurable or preventable… is why I started MDS Insurances, an Insurance Brokerage specialising in finding the best policies and giving the best advice for Security Companies.
Get a Free Insurance Assessment and see how good your policy is…contact me so I can assist you with either advice or obtaining the correct coverage for your business.
