In This Edition

TWO WORDS THAT AN INSURED NEVER WANTS TO HEAR:

From the Headlines - Something to Think About

The Enemy Is Not Us: Unexpected Workplace Violence Trends

Top 3 Tips for Setting Business Goals

THE BESTGUARD NEWSLETTER

TWO WORDS THAT AN INSURED NEVER WANTS TO HEAR:

“CLAIM DENIED!”

Sadly, security guard policyholders hear words like this all the time:

“We have concluded that there is no coverage for this matter.”
“We expressly reserve all of our rights to deny coverage under the policy of insurance and insurance law.”
“We have reviewed the allegations of this claim as well as the coverage afforded in the policy of insurance and must disclaim coverage of this matter.”

The typical General/Professional Liability policy for a private security agency contains a minefield of exclusions that frequently trigger claim denials. Very few of the policies offered to private security agencies really protect them adequately. It seems hard to believe that an insurance company or agency specializing in insuring private security agencies would knowingly sell an insurance policy that excludes everyday security operations, but they do. Here are some typical security guard claim scenarios that may trigger a claim denial:

Third Party Over Suit Exclusion - Did you know that if a guard sues a client for injuries sustained on the client’s premises and the client demands defense from the guard company that the claim may be denied by some liability carriers?
Financial Loss - It may surprise you to know that a security guard or private investigation claim causing financial loss but no bodily injury or property damage will often times be denied by insurers.
Assault & Battery Exclusion - You may be surprised to know that a claim denial may be issued if a guard uses unreasonable force while protecting life or property. A claim denial may also be issued if the guard does use reasonable force, but is not protecting life or property.
Liquor Establishment Exclusion - Did you know that if a guard agency is sued because their guard is in an altercation in the general vicinity of where liquor is served that the claim may be denied?
Retail Consumer Sales’ Exclusion – Any claims arising out of retail guard operations are sometimes excluded and denied by at least one insurance company specializing in the class.
Employee Theft Exclusion - Are you aware that if a guard steals from a client, that the subsequent claim will probably be denied by the guard service’s liability carrier. They will not even provide legal defense coverage for the claim.
Sexual Harassment/Molestation Exclusion - Did you know that if a guard sexually harasses/molests an employee of a client and the client’s employee sues the guard company that the claim will more often than not be denied?
Criminal Acts Exclusion - Suppose a guard calls in a phony bomb threat to a client’s business and the client sues the guard agency for business interruption, do you think this claim would be covered? Some liability carriers may deny on the grounds that it was a criminal act. Other carriers may deny on the grounds that it resulted in financial loss and there was no property damage.
Vicarious Liability - Did you know that if a guard is accused of any type of criminal behavior such as arson or malicious mischief that the guard company employing the guard runs the risk of their claim being denied?
Classification Description - You may not be aware that if a guard performs duties at a client location that are not considered usual and customary for the guard classification that any claims arising from those non-security duties may be disclaimed.

Brownyard Programs is proud to inform our readers that we have a liability insurance policy that will cover everyone of the claim scenarios described above. Why take a chance on having one of your liability claims denied? Contact one of our underwriters today. It may surprise you to know that our insurance policies don’t cost anymore and sometimes less than our competitors and they certainly provide much better protection. Because that’s our sole business – protecting the protectors!

From the Headlines - Something to Think About

The following headlines taken from The New York Times are good examples of potential security guard claims ask yourself if your General/Professional Liability insurance would protect you adequately in any of these scenarios:

August 2, 2004 - Experts Say 'Hero Syndrome' Not Common Among Police
When the police arrested him, they accused Joseph Rodriguez, a former transit officer, of placing a bomb in the Times Square subway station, causing a blast that injured him minutes after he warned commuters about an impending explosion. That explosion injured an arm, leg and eye. But if Mr. Rodriguez is found to have built a bomb to create an opportunity for bravery, his case would appear to be an anomaly. While there are no known scientific studies on ''hero syndrome'' crimes, experts say that police officers are involved in such crimes less often than firefighters and security guards. Dr. Park Dietz, a renowned forensic psychiatrist, said that most so-called vanity crimes that are known to experts are committed by security guards. ''In a given year,'' he said, ''we see 10 security guard cases; 3 law enforcement cases; 3 firefighter cases, and 4 hospital cases.''

December 17, 2004 Private Guard at Home Site Is Charged With Arson
A security guard, who worked in a new subdivision in southern Maryland, is arrested and charged with setting fires in the worst case of residential arson in the state's history; fires caused $10 million in damage, destroying 10 houses in various stages of construction and damaging 16 others.

October 29, 2004 Guard Admits Theft of Suit
A former Texas Motor Speedway security guard surrendered to the authorities in connection with the theft of a racing suit worn by the late NASCAR icon Dale Earnhardt, Sr.

The Enemy Is Not Us: Unexpected Workplace Violence Trends

Researchers from the universities of Kentucky and Illinois conducted a workplace violence survey of 868 full-time employees at a Midwestern municipal government, and their research produced some unexpected conclusions. The employees who were surveyed consisted of 50 categories of employees, ranging from clerical office workers to emergency responders.

Five percent of those surveyed said they had been sexually harassed or abused, compared with 15 percent who were physically harassed or abused
Nearly 50 percent were verbally harassed or abused.
Only 13 percent and 11 percent of verbal threats came from coworkers and managers, respectively
65 percent of the verbal threats came from customers.
The study found that customers were responsible for just 1 percent of sexual assault incidents, while coworkers accounted for 16 percent of such incidents and managers accounted for 83 percent.

The researchers found strong correlations among verbal, sexual, and physical abuse and also determined that employees were more likely to be exposed to violence when in high contact with the public. Many HR departments have policies aimed at preventing violence from employees, but the researchers advise companies to also take steps to address the threat of violence posed by customers. These steps should include a safe office layout; a bell/buzzer that sounds when customers enter the main entrance; conflict negotiation/avoidance training for employees; and a system for removing volatile customers from the premises.

Source: Public Personnel Management (Quarter 4, 2006) Vol. 35, No. 3, P. 229 ; Hoobler, Jenny M.; Swanberg, Jennifer

Top 3 Tips for Setting Business Goals

1. Be specific and clearly define goals.
Distill your life plan into an action strategy in which goal-setting is critical. Concentrate on the specific steps necessary to achieve success. If your company involves more than just you, your goals need to be communicated and communicable. Help your support team understand your passion and objectives.

2. Be ambitious, but be real.
It's important that goals are achievable. They'll turn negative if you aim too high, completely miss them or have too much riding on them. Be responsible, diligent and write down conservative, realistic and aggressive goals. The conservative goal is your worst-case scenario. Be sure your business can at least survive, or continue to thrive, by reaching this one

3. Make goals measurable.
Create goals with near-term, mid-term and long-term review intervals. By regularly assessing progress and making necessary adjustments along the way, you'll stay focused and grow your business faster and more cost-effectively.