How Security Guard Services Can Lower Your Business Insurance Costs

Can Hiring Security Guard Services Help Lower Your Business Insurance Costs?

Yes. Businesses that employ professional security guard services can significantly reduce their insurance costs. Insurers evaluate risk based on the likelihood of incidents such as theft, damage, or unauthorised access. By employing trained security officers who deter these events, companies demonstrate that they are actively reducing potential liabilities. This shift in risk profile often leads to better terms and lower premiums on commercial property insurance policies including property insurance, liability cover, and employer’s liability.

The Relationship Between Business Risk and Insurance Premiums

Insurance premiums are calculated based on how exposed a business is to loss or damage. Businesses operating in areas with higher crime rates or without adequate protection are considered high risk. This perception leads to higher insurance premiums. By investing in security guard services, companies signal that they are taking risk prevention seriously.

Why Do Insurers Lower Premiums When Security Guards Are Present?

Insurers assess risk through historical data, claims frequency, and preventative measures in place. Manned guarding reduces exposure to incidents like burglary, vandalism, internal theft, and unauthorised entry. When risks are lowered, insurers are more confident in offering competitive rates. A consistent reduction in incidents also helps to maintain a clean claims history which further improves insurability.

Security Guards Help Reduce Insurance Claims by Controlling Risk

Professional security guards are trained in situational awareness, access control, emergency response, and conflict resolution. Their presence not only discourages criminal behaviour but also helps respond quickly to incidents that may otherwise escalate.

Reducing Theft and Vandalism on Commercial Sites

Regular foot patrols, CCTV monitoring, and real time reporting are just a few of the duties carried out by trained guards. These activities make it harder for opportunistic criminals to operate. A reduced number of incidents leads directly to a lower number of claims, helping insurers lower your business insurance premiums over time.

Incident Response Lowers Claim Severity

In emergencies, time is everything. Having someone on-site who is trained in fire safety, first aid, and evacuation procedures can prevent injuries and reduce damage. Security officers can intervene early and call the relevant emergency services while ensuring safe evacuation, all of which can limit the extent of the claim and support the insurer's loss mitigation strategy.

Business Case: Reduced Premium Through On-Site Security

A regional distribution centre in Greater Manchester was experiencing regular incidents of theft and attempted break-ins. After employing round the clock security patrols and improving access control, the frequency of incidents dropped to zero within six months. The business was then able to renegotiate its commercial property insurance, reducing its annual premium by nearly 22 percent.

How Do Security Guards Affect Business Insurance Calculations?

Security guards affect several aspects of an insurer’s risk evaluation process. These include the business type, previous claims history, existing loss prevention measures, and industry regulations. Manned guarding supports insurers in accurately reassessing risk and offering improved terms.

Insurance Premium Discounts for Manned Guarding

Many insurance providers offer premium discounts to businesses that employ SIA licensed security personnel. These discounts are most common in sectors like retail, warehousing, and hospitality where the risk of theft and public liability is higher.

Professionalism Builds Underwriter Confidence

Security guards in uniform, equipped with radios, body cams or supported by monitored alarm systems, reassure insurers that your business is being managed with responsibility. Professionalism is an intangible asset that reduces perceived negligence and improves your position during policy renewal or new policy negotiation.

You can find more information about qualified security officers and licensing on our Security Guarding Services page.

Why Are Security Guards Important for Regulatory Compliance?

In some sectors, having a security presence is a by product of risk management audits that have highlighted the need. It is also a licensing requirement in some establishments and/or businesses or a stipulation set out by insurance guidelines. Security guards help you meet these requirements consistently.

Supporting Health and Safety Standards

Security officers ensure safety procedures are followed, especially in sectors like construction, logistics, and care. From managing site access to ensuring fire exits are unobstructed and enforcing PPE use, they help create safer workspaces. These efforts align with requirements under the Health and Safety at Work Act, helping to avoid penalties and supporting insurance eligibility.

Security as a Condition for Coverage

Certain business insurance policies include mandatory security conditions. These may include overnight patrols, keyholding, or response to alarms. Failing to meet these conditions could invalidate your cover. By using trained guards, you not only meet these requirements but demonstrate a proactive approach that insurers value.

For businesses in regulated industries, integrating manned security into your compliance plan can lead to stronger policy terms and better financial protection.