Insurers withdrawal from the market has led to price hikes

Over the last 12 to 18 months, we have seen major changes within the security insurance market – to the extent that some insurers have stopped insuring the sector altogether.

Since November 2019, five insurers have discontinued their security-specific offering; others have either restricted the cover on offer or refused to cover specific activities like door supervision or explosive detection dog handlers.

Unfortunately, one result of there being fewer insurers in the marketplace is that premiums are no longer as competitive as they used to be.

Why has this happened?

In short: there have been too many claims. Over the past three years, insurers have been paying out on an increasing number of claims against guarding companies, including those relating to door supervision, events injuries and theft or damage on third party property.

To compound matters, the security liability market has been very – and arguably too – competitive for many years now. This has led to an imbalance whereby claims paid out have far outweighed the premiums collected in the sector.

Why should I pay more? I didn’t claim!

Whether or not you’ve claimed on a policy, the issue affects everyone. If it didn’t, nobody would be able to afford insurance and businesses would simply close down. It’s how insurance works: spreading the risk and exposure across the country, rather than against a single business or individual.

If your business has claimed on its insurance, remember that most of these claims won’t have been your fault. However careful you are, you can’t avoid all claims – after all, that’s what insurance is there for! That’s why you still need the right policy.

Even if you haven’t claimed, it is still likely that your premium will increase – although not as much as for people who have had to claim on their policy.

What can I do?

The best thing to do is speak to your insurance broker. Here at BJP, we have access to various markets that are continuing to offer cover for the security sector. We can talk you through all the options available, explain the level of cover you’re likely to need, and ensure you take out the right policy for you at the lowest possible premium.

As experts in our field, we have over 30 years’ collective experience in the security sector and work closely with key security organisations like the Security Industry Authority (SIA), the National Association of Security Dog Users (NASDU), and the British Standards Institution (BSI), assisting them with the rewriting of new security standards.

Is there anything else I should be aware of?

The most important thing is to make sure the cover you take out is adequate for your needs. When you talk to your broker, they will explain all the relevant terms and conditions to you and ensure you are covered if things go wrong.

Even if you are not an existing BJP client, we’re just a phone call away. All you need to do is get in touch and ask for some advice! We will talk you through the pros and cons of the policies available on the marketplace or we can review your current cover and offer our advice.

So, what next?

Speak to us now! Whether you’ve just renewed or are due to renew tomorrow, call us for a chat. Given the current state of the market, however, we’d urge you to be proactive and not leave your renewal to the last minute – otherwise the price could come as a nasty shock and you’ll have no time to shop around elsewhere.

Terms should be available to you within 30 days of your policy’s renewal date, so you have time to make an informed decision.

Call or email us for a chat about how we can help you.

Our security team specialists, Steve Neudegg, Simon Lawrence, Antony Samuel-Camps and Ellie Conroy, can be contacted on 0118 979 2121 or emailed at