The Mechanic Group Provides Extensive Coverage for Today’s Security Industry

PRODUCT: Broad form commercial general liability program

COMPANY: Berkley Surety and Guard Insurance Co., Allied World Assurance and The Hartford, for which The Mechanic Group Inc. serves as the managing general agent with underwriting authority and policy issuance

BEST RATING: A or higher (Excellent)

AVAILABILITY: Coverage is available through independent agents and brokers.

FOCUS: Today’s security industry consists of many different parts: the traditional manned security guard firms that watch over office, retail, governmental and residential properties; firms that specialize in electronic security or carry out investigative work and background checks; and firms that manufacture, install and monitor residential and commercial alarm systems.

Because each segment of the security industry faces a unique set of exposures which differ from firm to firm, The Mechanic Group focuses on developing insurance risks that tackle the full set of today’s complex and challenging security risks.

“We understand risk and market trends associated with the security guard, electronic security, private investigative and background screening communities,” explains Marc Katz, principal, The Mechanic Group. “This in turn allows us to help clients and their brokers with risk management, loss control and claims management services that our competitors may be unaware are actually needed.”

According to Katz, it’s crucial to break down exposures by line of insurance. On the general liability side, he explains, the main exposures are bodily injury; personal injury, such as false arrest or detention; and damage to property in the insured’s care, custody or control.

The Mechanic Group’s program customizes and broadens these basic GL coverages by offering coverage extensions for errors & omissions, assault and battery, broad form property and theft, blanket additional insured and primary and non-contributory liability, EMT and paramedic, and electronic data liability.

“We also offer first- and third-party employee dishonesty coverage, and we’re one of just a few MGAs to offer complete bonding, such as bid and performance, to this class of business,” Katz adds.

UNDERWRITING: Coverage includes privacy and network liability and all other lines, including property, auto, bonding and directors & officers and employment practices liability insurance, as well as:

• Commercial liability, an exclusive MGA program with Allied World Assurance which includes E&O, assault and battery, broad form property damage (care, custody and control) and blanket additional insureds.
• Umbrella liability, which also includes an exclusive MGA program with Allied World Assurance
• Workers compensation, an exclusive MGA program with The Hartford which includes that company’s enhanced basic form endorsement and XACTPAY, the pay-as-you-go payroll reporting payment option
• Third-party fidelity (employee dishonesty), which includes first- and third-party coverage and no conviction clause, meaning employees do not necessarily have to be convicted for the bond to respond.

MINIMUM PREMIUM: GL is $2,500 plus tax/fee for security guards; $1,500 plus tax/fee for investigative and alarm. Workers compensation is $5,000.

TARGET: The private security community, including security guard, private investigation, intelligence, electronic security, alarm installation and monitoring, security consulting and background screening firms.

COVERAGE TERRITORY: All 50 U.S. states.

CONTACT: Marc Katz, principal; The Mechanic Group Inc., One Blue Hill Plaza, Suite 530, Pearl River, NY 10965; 800-214-0207, ext. 105.

Ronimarie Acord is an IA contributor.