The board of a townhome association in Pembroke Pines is replacing its security company after a string of car break-ins. Three agencies submit proposals, and each one attaches a certificate of insurance showing general liability with a one million dollar limit. The lowest bid is several thousand dollars a year cheaper, and the board is ready to vote. One director asks a simple question: if a guard gets into a fight with a trespasser and someone is hurt, which of these policies actually pays? Nobody on the board knows how to answer it.
That question is the right one. A certificate of insurance is a summary, and two certificates that look identical can describe very different protection. Associations, property managers, apartment owners and businesses that hire security companies take on part of the risk of whatever happens on their watch, and a few targeted questions before signing can keep that risk where it belongs.
A Certificate Is Not the Policy
A certificate of insurance lists the types of coverage, the carriers, the policy numbers, the limits and the dates. It does not show the exclusions, the sublimits or the endorsements that decide whether a particular claim is covered. Most certificates say so in their own fine print: the certificate confers no rights and does not amend or extend the policy.
For security services, that gap is important. The claims most likely to arise from security work, such as physical confrontations, removals, detentions and claims that the guard failed to prevent a crime, are the claims most often excluded or limited on general liability policies. A certificate showing a large general liability limit can sit on top of a policy with an assault and battery exclusion, which would leave the guard company without coverage for the very situation the client hired it to handle.
Ask About Assault and Battery by Name
The most useful single question is whether the company’s liability policy covers assault and battery claims, and if so, whether the full limit applies or a smaller sublimit. A company that works in the security industry should know the answer immediately. Asking for a copy of the endorsement, or a letter from the company’s agent confirming the coverage, is reasonable for a contract of any size. If the coverage is sublimited, the client should decide whether that sublimit is enough for its property.
Confirm the Policy Fits Armed or Unarmed Work
If the contract calls for armed officers, the client should confirm that the company’s policy is written for armed operations. A policy underwritten for unarmed guards does not necessarily extend to armed posts, and some policies exclude firearms entirely. The reverse matters too: an unarmed contract still carries real exposure, and the client shouldn’t relax its requirements just because no one is carrying a weapon.
Workers’ Compensation
If a guard is injured on the property and the security company doesn’t carry workers’ compensation, the injured guard may look to the property owner or association. Florida requires most employers to carry workers’ compensation, and security companies that rely on exemptions or treat guards as independent contractors can leave a gap that ends up on the client’s doorstep. The client should ask for a current certificate showing workers’ compensation and confirm it covers the people who will actually work the post, not just the company’s officers.
Additional Insured Status Is Different From Certificate Holder
Being listed as certificate holder means the client receives a copy of the certificate. It gives the client no rights under the policy. Being added as an additional insured, by endorsement, extends coverage under the guard company’s liability policy to the client for claims arising from the guard company’s work. For most associations and property owners, additional insured status is the protection that matters, along with a waiver of subrogation and primary and noncontributory wording so the guard company’s policy responds before the client’s own.
The client should ask for the actual endorsement, not just a certificate with the words “additional insured” typed in the description box. Our article on security company insurance requirements for Florida apartment properties walks through the contract wording in more detail.
Put the Requirements in the Contract
Vague language such as “contractor shall maintain adequate insurance” protects no one. The contract should list each coverage and limit: general liability with assault and battery coverage confirmed, workers’ compensation, commercial auto if the company uses vehicles on the property, umbrella or excess where the exposure calls for it, a fidelity bond if guards will have keys or access to units, and professional liability where the company is providing services like fire watch or monitoring. It should also require additional insured status, waiver of subrogation, primary and noncontributory wording and notice of cancellation.
Check the License Too
Florida licenses security agencies and guards under chapter 493 of the Florida Statutes, and agencies must maintain liability insurance as a condition of licensing. The client can confirm that the agency’s license is active and that the guards assigned to the property hold the right licenses for the work, including the separate license required for armed officers. A company that can’t produce license information promptly is a company to look at more carefully.
Warning Signs
A company that is slow to produce a certificate, can’t answer questions about assault and battery coverage, or offers pricing far below comparable proposals deserves extra scrutiny. Low pricing sometimes reflects efficient operations, and sometimes it reflects minimal insurance, misclassified guards or coverage that won’t respond. Asking for renewal certificates each year, not just at the start of the contract, keeps the file current. Our article on hiring a security company for a Florida HOA covers what boards should check from the association’s side.
Worth Confirming With Your Agent
-
Whether the guard company’s liability policy covers assault and battery, and at what limit
-
Whether the policy is written for armed operations if armed officers will work the post
-
Whether workers’ compensation covers the guards who will actually be on site
-
Whether you are added as additional insured by endorsement, with waiver of subrogation and primary wording
-
Whether the contract lists specific coverages and limits rather than general language
-
Whether the agency and its guards hold current Florida licenses for the work
This article is general information and is not legal advice.
Talk to Prestige Insurance Group
Prestige Insurance Group insures security companies and the associations, property managers and owners who hire them, so we review these certificates from both sides. If you are comparing security proposals or renewing a contract, we can look at the certificates and contract language and tell you what the coverage actually provides.
Call the office nearest you. Se habla español.
Orlando: 407-993-2331
Miami: 305-969-8776
Stuart: 772-247-3788
Prestige Insurance Group, License L057894
