New liability insurer Quantum offers products tailor-made for high growth security industry
18 March 2011 Quantum Liability Underwriters
The high growth South African security industry, which boasts more than 5 000 security companies with a total of more than 300 000 employees, will welcome the entry of a new specialist insurer focused on providing liability insurance cover developed specifically for unique security industry needs.
Quantum Liability Underwriters, headquartered in Centurion, has entered the market to offer security companies cover for the commercial liabilities they face in providing security services to commerce, industry, farms and private residences.
MC du Toit, Quantum’s chief executive, says security companies, whether they be full service guarding, Cash-In-Transit or alarm and electronic protection system installers or providers of all these services, face the risk of significant damages claims and legal costs resulting from liability exposures.
“These claims can be of a magnitude that may bankrupt a security company if it has no or inadequate security liability cover. Many of the larger clients of security companies in fact demand that security companies have proper insurance cover in place.”
Du Toit, a Chartered Accountant with B Com Hons and B Acc degrees and 16 years of experience in the security industry including six years as CEO of Coin Security Group, has been involved at director level in the insurance industry for the past six years. He adds that the security liability insurance market in South Africa has until now been limited in terms of choice of insurance products and providers.
“We saw a gap for a more comprehensive offering, so Quantum provides general public liability cover for injury or property damage arising from security duties, with extensions for defamation, statutory defence costs and employer’s liability.”
Additional specific indemnity covers include pollution liability, products liability and liability for security claims that could arise from injury to people or property damage while in the care or custody of the security company. Wrongful arrest cover is also offered.
Typically these liability exposures are covered within the following security services offered to secure domestic, commercial and industrial premises: static guards and dogs, access and egress control, the inspection and confirmation of goods leaving the premises and monitoring and armed response.
Other exposures include the protection of specified people, VIP protection and contracts covering general security, access control, parking, crowd control, the escort of people or vehicles carrying valuables or cash in transit and protection services for exhibitions, sports events, concerts, conferences and other similar events.
Du Toit adds that there are extensions for negligent advice and firearms. Professional indemnity is offered against claims arising out of injury or damage to property as a result of professional negligence and an extension for medical response and ambulance services is also offered.
Marketing of the Quantum products and services is the responsibility of Quantum director Cornel Schoeman, who also has extensive experience in the security industry. “Partnership is a key word in our business and we are offering brokers a new market opportunity with both capacity and expertise,” said Schoeman. “We will be distributing these products through a select group of brokers and intermediaries.”
Security guards and control room supervisors carry a large burden of responsibility. Du Toit points out that their clients rely on them to keep their premises, whether hotels, restaurants, stores, warehouses, offices or homes and the people in them, safe and secure at all times.
“Crime is unfortunately a fact of life and a variety of incidents occur daily, often where security guards are present. If damage is caused and people are injured as a result of an incident, the security service provider can be held liable when the victims seek restitution.
“Our goal is to help security companies overcome the potentially crippling effects of liability claims and litigation by providing innovative alternative and customised risk management solutions supported by solid underwriting. We have a comprehensive product range which will be continually enhanced and developed to meet client and market needs.”
Quantum’s partners include local insurer Resolution Insurance Co Ltd, Africa Re a long-established reinsurance specialist in the Africa market, specie insurance specialist Polygon Underwriting and Arma Iuris, a specialist in providing legal services to security providers.