Many people perceive armed guard favorably as a deterrent against violence and an assurance that a violent incident can be quickly quelled. From a client’s standpoint, it offers a perception of higher protection.
Armed guards are widely accepted as warranted in certain locations where the threat level matches the use of force. Government contracts and high-profile corporate executives are protected by highly trained armed officers. At banks, the risk of robbery also justifies an armed officer.
But from an insurance and risk standpoint, it is difficult to craft a convincing argument for armed guard in many settings. The presence of a gun is not proven to de-escalate a situation in every environment, and it is unlikely to deter violent and determined individuals. The presence of an additional firearm—even in an officer’s hands—only stands to increase the risk of casualties. This is particularly true of public or crowded environments, like stadiums, schools, and restaurants.
By looking at insurance claims, it’s clear that when a guard discharges his or her gun, the resulting claims are serious. There is a big difference between an officer using mace and an officer using a gun. Claims resulting from the use of firearms are likely to breach insurance policy limits, so firms employing armed guard are wise to purchase higher limits of liability than firms not employing armed officers.
When someone is shot by a guard, his—or his estate—will likely sue the business that contracted the officer. And the security firm and officer are going to be brought into the suit as well—no matter how well-trained the officer. If it goes to trial, it is very rare for a judge and jury to believe use of the weapon was justified. It is almost always perceived as excessive force.
The insurance marketplace for security firms is very small, and employing armed officers reduces the market even further. This means firms that provide armed officers will be paying a higher premium for less coverage; they will most likely be relegated to the surplus lines insurance market, which can mean more policy exclusions. Therefore, it’s important for the security firm to weigh the increased costs and policy limitations of taking on an armed contract.
