Security Patrol Vehicle Insurance: Company Cars, Guards' Personal Vehicles, and Hired and Non-Owned Auto

What auto insurance does a security patrol company need?

A security patrol company typically needs a commercial auto policy for vehicles it owns or leases, plus hired and non-owned auto coverage for vehicles it rents or that employees drive for work. Together these protect the company when a patrol vehicle causes injury or damage to others. Physical damage coverage repairs your own vehicles, and many security companies add an umbrella above the auto limit, since patrol driving is frequent and often at night.

• Commercial auto liability for company-owned and leased patrol vehicles.
• Physical damage coverage for the vehicles themselves.
• Hired auto coverage for rental cars used on patrol.
• Non-owned auto coverage for employees' personal vehicles used for work.
• Umbrella or excess liability above the auto limit.

Does a security guard's personal auto policy cover patrol driving?

A security guard's personal auto policy may not cover patrol driving, because many personal auto policies limit or exclude certain business uses, and an insurer may not have priced a policy for regular patrol work. Even when the guard's policy does respond, its limits are often low, and a serious accident can quickly exceed them. When a guard in a personal car hits someone on patrol, the injured party will often sue the security company too. Non-owned auto coverage protects the company's liability for vehicles it does not own. It generally does not cover the guard personally or repair the guard's car. Require guards who drive for work to carry personal auto limits that meet a company minimum and to show proof each year.

Who insures golf carts and site vehicles owned by a security client?

Golf carts and site vehicles owned by a security client are often insured by the client for damage to the vehicle, while the security company's own liability for using them depends on whether the vehicle counts as an auto or as mobile equipment under its policies. The answer should be settled in the contract before an officer ever drives one. Golf carts used only on a campus or resort are often treated as mobile equipment under general liability rather than as autos. If a cart is driven on public streets or licensed for road use, it may be treated as an auto. Damage to the client's cart itself is separate, because liability policies commonly exclude property in your care, custody or control.

• Ask the client whether its policy covers damage to the cart and to others.
• Confirm whether carts ever leave the property or cross public roads.
• Clarify in the contract who pays for damage to client vehicles.
• Review whether your general liability treats the cart as mobile equipment.

Do lights, markings and emergency equipment affect patrol vehicle insurance?

Lights, markings and emergency-style equipment on security patrol vehicles can affect insurance because underwriters want to know how the vehicle is used and whether drivers might operate it in ways that raise the chance of an accident. Amber light bars, spotlights and company decals are common and usually acceptable when disclosed. What concerns underwriters is behavior. State rules generally restrict private security from using red or blue emergency lights, and patrol vehicles should never be driven as emergency vehicles. A written policy that officers obey all traffic laws, even when responding to an alarm, helps safety and underwriting.

What driver standards do insurers expect for security patrol officers?

Insurers expect security patrol companies to review each driver's motor vehicle record before assigning patrol duty and at least once a year after that, and to apply written standards for which violations disqualify a driver. Driver quality is one of the biggest factors in commercial auto pricing for security firms. Carriers look closely at major violations such as driving under the influence, reckless driving and suspensions, plus recent accidents. Your own documented criteria show underwriters you manage the exposure.

• Pull motor vehicle records at hire and annually.
• Set written disqualifying violations and accident thresholds.
• Provide defensive driving training for patrol officers.
• Use telematics or GPS to monitor speed and routes.

What auto limits do security client contracts usually require?

Security client contracts commonly require commercial auto liability limits of $1 million per accident, and larger property owners, campuses and public entities may require higher limits through an umbrella. Contracts may also ask for additional insured status for the client on the auto policy and a waiver of subrogation. Some contracts call for "any auto" coverage, which is broader than a policy covering only listed vehicles plus hired and non-owned.

Ready to review your security patrol auto program?

If your patrol program mixes company cars, personal vehicles and client carts, we would be glad to help you map who covers what and close any gaps. Schedule a conversation at calendly.com/grandbayfinancial.