What insurance should a security company have?

What the state requires

A Texas security company cannot hold its license without the insurance the statute requires. Occupations Code chapter 1702 and the Department of Public Safety’s rules require a licensed company to maintain general liability coverage in prescribed forms and amounts, and to keep it current as a condition of the license. That is the floor: a company that lets its insurance lapse can lose its license, which is one reason the license status is worth checking at renewal.

What clients usually add

Workers’ compensation, so an officer injured on your property is the security company’s claim and not yours. Commercial auto, for any patrol vehicle on your property. A certificate of insurance naming your entity as an additional insured, so your own insurer can see the coverage. Some clients, particularly in healthcare, public procurement and industrial sites, specify higher limits or additional coverages in their contracts, and a company that serves those clients carries them.

How to check

Ask for the certificate of insurance with the proposal, not after signing. Read the named insured and confirm it is the same legal entity as the company on your contract and on the state license. Read the effective and expiration dates. Ask your own insurer or risk manager whether the limits fit your property. Ask for an updated certificate at each contract renewal.

Why this matters for price

Insurance, licensing, training, supervision and dispatch are what a licensed company’s hourly rate pays for, and they are what is missing from a rate that looks too low. The insurance and liability article explains the connection, and the before you sign article lists the documents to collect.