Armored car insurance is a type of commercial insurance policy that provides coverage for armored cars and their drivers. Armored car insurance typically covers the vehicle, its cargo, and the insured’s legal liability. Armored car insurance can be purchased as a package policy or as an endorsement to a general liability policy. The policy covers physical damage to the vehicle, cargo, and property of third parties, as well as any legal liability resulting from the operation of the vehicle. In some cases, the policy may also include coverage for employee injury and death.
Who Needs Armored Car Insurance?
Anyone who owns, operates, or transports money, precious metals, jewels, artwork, or other valuable items that need to be protected against theft, damage, or loss should consider purchasing an armored car insurance policy. Armored car companies, banks, casinos, jewelry stores, museums, auction houses, and other businesses that handle large sums of cash and other valuable items are the most likely candidates for armored car insurance.
Types of Armored Car Insurance
There are several types of armored car insurance. These include:
1. Liability Insurance: Liability insurance provides coverage for bodily injury and property damage for which the armored car company is legally responsible. This type of insurance covers legal fees, court costs, and any settlements incurred as a result of the company’s operations.
2. Physical Damage Insurance: Physical damage insurance covers the costs to repair or replace the vehicle in the event it is damaged due to an accident or other incident. This type of insurance also covers damages caused by theft or vandalism.
3. Cargo Insurance: Cargo insurance covers the cost of any goods or valuables that are being transported in an armored car. This type of insurance is usually required by law if the armored car is transporting valuable items or large sums of money.
4. Umbrella Insurance: Umbrella insurance provides additional coverage over and above the limits of the other policies. This type of insurance can protect the company in the event of a major claim or lawsuit.
How Much Does Armored Car Insurance Cost?
The cost of armored car insurance varies greatly depending on the type of coverage needed, the size of the vehicle, the location, and a number of other factors. Generally, policies start at around $1,000 per year and can go up to $10,000 or more per year. It is important to speak with an insurance agent to get a full understanding of the coverage and cost of armored car insurance.
Armored Car Insurance Risks and Exposures
The risks and exposures faced by armored car owners include:
1. Theft: Armored cars are often used to transport large amounts of money, valuable items, or other items of value. This puts the car at risk of being targeted by thieves, who may attempt to steal the items inside or vandalize the car.
2. Vehicle Damage: Armored cars are designed to withstand a certain level of damage, but they can still be damaged in collisions with other vehicles or objects.
3. Liability: Armored cars are often used to transport items that are owned by other people. If damage or theft occurs while the car is in transit, the owner of the car may be held liable for any losses.
4. Security: Armored cars must be operated and maintained in a secure manner to ensure the safety of the items they are transporting. Poor security procedures may leave the car vulnerable to theft or vandalism.
5. Employee Injury: Armored car companies employ armed personnel to protect the items they are transporting. Employees may be put at risk of injury if they are not adequately trained or equipped to deal with potential threats.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7381 Detective, Guard and Armored Car Service
- NAICS CODE: 561613 Armored Car Service
- Suggested Workers Compensation Code(s): 7720 Police Officers & Drivers, 8810 Clerical Office Employees NOC
Armored Car Insurance – The Bottom Line
Armored car insurance is a specialized type of insurance coverage designed to protect the owners of armored cars and related vehicles against losses and damages. It is important for armored car owners to understand the unique coverage requirements that come with this type of insurance. Understanding the coverage limits, the types of losses and damages that are covered, and the exclusions that apply can help ensure that the right coverage is in place to protect the business and its assets.