Insecure Insurance — For a Security Firm!
Our client decided it was time to change security firms.
We reviewed the contract with the prospective new firm, and advised that the contract should establish the right to review full copies of the security firm’s insurance policies.
When the policies came in we were dismayed to see an “Assault and Battery” exclusion – this was significant for the client, as they had just experienced an assault claim with the prior security firm.
If a security guard’s coverage excludes claims due to exactly the hazards they are hired to address, what is the value? We are happy we could protect one client from this, but how many other traps are in the policies you rely on?
(In another example, a recent case shows the same exclusion being taken much further. Here, a child in a playground was injured in the cross fire when a gunfight broke out at the apartment complex where he lived. The insurer successfully refused coverage, as the child’s injuries arose out of assault, and the policy contained an Assault and Battery exclusion.)1
1-Cincinnati Specialty Underwriters Ins. Co. v. Code 3 Security & Protection Services, Inc., No. 15-2028 (RJL) (D.D.C. Aug. 9, 2017)
Sep 06, 2017