Security Guard Company Workers' Comp With a Clean Loss Run
A security guard company with a clean or improving loss run is a different placement from a hard-to-place one. If your guard operation has a manageable claim history, the work is making the account read as a good risk, and four things decide most of that: the experience mod, the class code, how payroll is reported, and what the underwriter sees in the loss run.
What an underwriter prices in a guard account
Guard accounts are priced on payroll under the governing classification, adjusted by the mod. Armed work, licensing, client mix and turnover are underwriting factors layered on top. NCCI does not separate armed and unarmed guards into different codes, so a carrier looks at licensing, training and how the contracts are structured instead. The full breakdown is in our security guard classification guide.
How a clean run lowers the mod
The experience mod is built from roughly three years of your own claims. NCCI's experience rating plan uses policies effective between 21 and 57 months before the rating date and leaves out the current policy. Losses are split at a state-approved point: the primary portion reflects frequency and carries more weight than the excess portion, and a state accident limitation caps how much any single claim can count. An employer with better-than-average experience earns a credit below 1.00. In practice, a few small claims move the mod more than most owners expect, and one large claim does less damage than a pattern of many small ones.
What to fix before renewal
Start with the loss run. Open claims carry reserves in the calculation, so a reserve that no longer reflects the file is worth raising with the carrier, and closed claims should show as closed. Confirm every employee is on the right classification and that payroll reporting matches what you will report at audit; mistakes there surface later as a premium audit dispute. Write down your return-to-work and licensing practices, because underwriters ask.
What to send
A signed ACORD 130, currently valued loss runs for the last several years, payroll by class code, the mod worksheet, headcount and turnover, a list of states, and a short description of your contracts and licensing. A complete file is reviewed faster and quoted more accurately.
How CPR handles guard accounts with decent claims
CPR is best known for hard-to-place accounts, but a guard company with a manageable loss history is welcome. We read the file, look at the structures available for your class and size, and come back with options. Send the application and loss runs to proposals@cprbrokers.com or call (714) 928-3858.
Frequently Asked Questions
Is armed security a different class code?
No. NCCI classification language does not split guard work into armed and unarmed codes. Armed exposure is an underwriting factor, which is why documentation of licensing and training matters. See our guide to guard classification for detail.
How much does a clean loss run help a security guard company?
It helps through the experience mod and through underwriting appetite. A mod below 1.00 lowers the premium directly, and a loss run with few claims and closed files lets an underwriter price the account as an ordinary risk instead of a problem.
When should we start shopping the renewal?
Earlier is better. Giving yourself time to correct loss runs, confirm payroll classification and answer underwriting questions leaves room to compare more than one structure, rather than accepting whatever is offered at the last minute.
Do you only place accounts nobody else will write?
No. CPR is best known for hard-to-place accounts, but an account with a manageable loss history is welcome and is handled the same way: a complete file, reviewed by a person.
