Relevant Oak cover for this topic includes Security Guarding, Events and Door Supervision Insurance, Fire and Security Contractors Insurance, Professional Indemnity Insurance and Motor Fleet Insurance.
A signed contract can create obligations your policy was not priced for
Security agreements often set standards for attendance, response times, patrol frequency, access control, reporting and the result a client expects. Those promises can go further than the basic description of guarding or door supervision on an insurance schedule. A policy may respond to covered negligence, but that does not mean it automatically accepts every promise made in a client contract.
Review the contract before signing, not after an incident. Put the proposed terms beside the current policy schedule and wording, and ask the broker or insurer to clarify points that could change the risk. This is a practical review, not a substitute for legal advice on the contract itself.
1. Indemnities, liability caps and excluded losses
Look for clauses requiring the security provider to reimburse the client for claims, losses, legal costs or damage. Check whether the obligation is limited to loss caused by the provider's negligence, or whether it extends to events outside the provider's control. Pay attention to any wording that makes one party responsible for the other party's acts.
A contractual liability cap and an insurance limit are not interchangeable. A cap may apply to some losses but not others, while a policy limit may be reduced by defence costs, shared across claims or subject to a sub-limit. Ask a solicitor to review unusual or uncapped indemnities, and ask the broker to compare the insurance response with the proposed obligations.
2. Performance guarantees, efficacy and service scope
A contract may describe a desired result: no theft, no unauthorised entry, a particular response time or continuous protection of a site. That wording can turn a service description into a performance obligation. Specialist efficacy or contractual-liability cover may be available for some risks, but its trigger and exclusions vary. Never assume that a general liability policy pays simply because the client alleges that the security service failed.
Make sure the contract accurately describes what staff will do, where they will work, the hours covered and what is outside the assignment. Door supervision, event work, keyholding, mobile patrol, CCTV monitoring and close protection have different operational details. Tell insurers about all activities and any proposed change before work starts.
3. Subcontractors, staff and licence responsibilities
The lead contractor may remain responsible to the client for work delivered by subcontractors. Check whether the contract requires minimum insurance limits, evidence of cover, specific training, screening or approval before a subcontractor is appointed. Confirm how the business checks that certificates stay current and that the subcontractor's declared activities match the work being delegated.
For licensable activities, check the Security Industry Authority's current guidance for the roles and work being supplied. Insurance does not replace licensing, training or supervision requirements. Employers' liability requirements also depend on the business's employment arrangements; disclose employees, labour-only subcontractors and other working relationships accurately.
4. Keys, data, incident notices and evidence
Keyholding, access cards, personal information, client systems and property in custody can trigger different policy sections or specific limits. Check who controls credentials, how keys are stored and tracked, how a lost item is reported, and whether records can show who accessed a site. Contract wording should match the real procedures rather than promise controls that are not in place.
Incident notification deadlines can be short. Agree who contacts the client, who contacts the insurer, what records are retained and how footage or incident books are preserved. Keep evidence in line with privacy and data-retention duties. A clear chronology, rota, assignment instruction and contemporaneous report may help the client and insurer understand what happened.
A short pre-signing checklist
Before accepting a new contract, compare the activities and locations with the policy schedule; test every indemnity and performance promise; check limits, defence costs and sub-limits; confirm subcontractor obligations; and identify notice deadlines. Ask questions early if the client requires wording, a certificate or an insurance limit that differs from the current arrangement.
Save the signed contract and the insurance review together. If the scope changes, the client adds a site, or the business accepts a new service standard, return to the review. A small amount of preparation can expose a mismatch while there is still time to negotiate or ask an insurer for terms.
5. Claims notification and cooperation
A contract may require immediate reporting to the client, while the policy has its own notification and cooperation requirements. Prepare a procedure that meets both. Preserve incident logs, CCTV where lawfully retained, staff accounts and assignment instructions. Do not admit liability or agree a settlement without checking the insurer's requirements. Reporting a concern is not the same as confirming that the policy covers it.
6. Insurance evidence and renewal obligations
Read any clause requiring certificates, endorsements or a particular level of insurance. A certificate summarises evidence of cover; it is not the complete wording and cannot prove that all indemnities are insured. Check whether the contract requires insurance to remain in place after the assignment ends, and discuss how this interacts with claims-made professional cover. Ask the broker to flag a mismatch before promising an endorsement the insurer has not agreed.
7. Territory, jurisdiction and work outside the brief
UK operations can still involve a contract subject to another country's law or a client requiring a wider jurisdiction clause. Compare both territorial and jurisdiction provisions, not just the location of the site. Agree how assignment changes are authorised: an extra venue, event activity or close-protection task can change the declared risk. Obtain legal advice on contractual responsibility and insurer confirmation of any required change to cover.
Editorial information
Author: Oak Insurance Brokers. First published 2 August 2026; last updated 14 October 2026.
Independent review has not been recorded for this guide.
UK reference reading
Related guides
Important
This guide is general information, not legal, regulatory or personal insurance advice and not confirmation of cover. Always check current official guidance and the terms, conditions, limits and exclusions of any policy.