Insurance: a statement of intent

We have said as much on numerous occasions. At long last, it appears that the Association of British Insurers (ABI) has made some positive admissions in this area.

Security Management Today has been privy to a copy of a joint paper scripted by the SIA and the ABI and aimed squarely at the latter’s membership. The document lists the predicted benefits of regulation, and makes recommendations to insurers when they are underwriting a risk.

The benefits of regulation

According to the joint statement, the predicted benefits of regulation and licensing for the insurance sector are:

(i) reduced incidents of business-related crime against property because of the improved vetting of security operatives;

(ii) businesses protected by a security industry with improved operating standards and enhanced levels of professionalism;

(iii) reduced incidents of claims raised against security companies’ liability insurance;

(iv) better training of security operatives in managing emergencies (such as a fire scenario).

Importantly, several recommendations are made for insurers to bear in mind when they are about to underwrite a risk. These include:

No-one can claim ignorance of what is required under the legislation. The SIA has invested a significant amount of time and money in ensuring that all those in the entertainment industry, the security sector and door supervisors themselves are fully aware of what is required of them in order to comply with the Private Security Industry Act 2001

(i) on issuing or renewing policies and when claims are made, ensure that security providers or business owners are using licensed operatives;

(ii) for property claims, consider whether policy conditions have been fully met if unlicensed security operatives have been employed;

(iii) liability insurers have noted the SIA licensing rules, and will expect their customers to comply with these rules… liability insurers may wish to ask their customers if they are employing SIA-licensed staff.

Insistence on Approved Contractors only

At Security Management Today, we believe that the insurance community ought to be even stricter. If cover is to be granted on a given site, insurers MUST insist on clients using only those security companies that have been passed fit to be a member of the SIA’s Approved Contractor Scheme. If that is not the case then insurance cover should be withheld.

To many this will come across as dictatorial, but we feel it’s the only way in which standards will be raised to the high levels necessary.

We would very much like to hear from the major insurance companies dealing with the security sector so that we can air their views. Please write to Security Management Today at the address on page 3 of the current edition.