How Security Firms Can Reduce Commercial Auto Premiums
Shaun Kelly, The Liberty Company, CALSAGA Preferred Broker
For many security contractors, commercial auto insurance has become one of the most frustrating line items in the budget. Even companies with solid operations and strong client retention are seeing auto costs climb because the market has become more sensitive to frequency, severity, distracted driving, vehicle theft, repair costs, and nuclear verdict exposure.
The good news is that while you cannot control the broader insurance market, you can control how your company presents risk. Carriers reward disciplined operations. The firms that take driver management seriously, document their controls, and reduce preventable losses are typically in a stronger position at renewal.
Why Auto Premiums Keep Climbing
Commercial auto is no longer priced solely on the number of vehicles you own. Underwriters are looking deeper at driver quality, loss history, radius of travel, vehicle use, after-hours driving, hiring practices, and whether your company has a real fleet safety program or just a handbook sitting on a shelf.
For security firms, the exposure is even more nuanced. Patrol units, alarm response vehicles, supervisor cars, and employees driving between posts all create additional movement and more opportunities for claims. The more miles your business puts on the road, the more important your controls become.
Practical Ways to Improve Your Auto Profile
- Tighten driver selection. Use MVR reviews, minimum age and experience requirements, and clear hiring standards before anyone gets behind the wheel.
- Create a written fleet safety program. Document expectations for phone use, seat belts, speed, distracted driving, accident reporting, and post-incident review.
- Use telematics or dash cameras thoughtfully. Programs that monitor harsh braking, speeding, and unsafe habits can create coaching opportunities and show underwriters that management is engaged.
- Control who drives what and when. Limit personal use, overnight use, and unauthorized drivers whenever possible.
- Train and retrain. A one-time orientation is not enough. Ongoing driver coaching and documented corrective action matter.
- Get ahead of claims. Fast reporting, evidence preservation, and active claims management can reduce severity and improve how your account is viewed at renewal.
What Underwriters Want to See
When an underwriter reviews your account, they want confidence that your company does not treat vehicle exposure as an afterthought. They want to see accountability. That includes driver lists, MVR protocols, written policies, telematics use, disciplinary standards, vehicle maintenance, and leadership involvement.
In other words, reducing premium is not just about shopping harder. It is about becoming a better risk.
The Bottom Line
Security contractors that invest in disciplined driver management are usually better positioned for improved pricing, better carrier interest, and more stable renewals over time. The strongest results come when operational controls, claims management, and broker strategy all work together.
Have questions about your insurance program or contract language? Reach out to Shaun directly.
Shaun Kelly, VP Security Practice
The Liberty Company Insurance Brokers, LLC
Shaun.Kelly@libertycompany.com
Shaun Kelly serves as Vice President of the Security Practice at The Liberty Company Insurance Brokers, helping security company owners and executives navigate complex coverage decisions, contractual risk, and insurance program strategy.