NCJ Number
102888
Journal
Security Management Volume: 30 Issue: 9 Dated: (September 1986) Pages: 46-50,52
Date Published
1986
Length
6 pages
Annotation
This article examines various reasons given for the high costs of liability insurance for security firms and outlines some solutions to the problem.
Abstract
Recently, security firms have experienced premium increases for liability insurance ranging from 100 to 500 percent. Major participants in the effort to control insurance premiums are insurance companies, the Federal Government, consumer groups, and the media. Each participant presents statistics to bolster its analysis of the problem, statistics which often contradict those used by other analysts. Some of the arguments advanced are that the legal system stimulates too many lawsuits, lawyers are paid too much, court awards have been excessive, and insurance companies have been poorly managed. All those debating the problem agree that a major contributor to the problem is joint and several liability, under which a party partially at fault for an injury suffered can be forced to pay 100 percent of the damages. Solutions proposed include reverting to strict liability, putting a cap on damages juries can award, controlling the fees of plaintiffs' attorneys, and removing the insurance industry's antitrust exemption. Security firms should advise clients of all the risks at a site and encourage them to invest in appropriate protection. Security firms should also make clear to clients or prospective clients the limits of their liability and not agree to assume unreasonable liability for security-related injuries. 9 reading suggestions.