How Security Firms Can Reduce Liability in High-Crime Housing

Security Under Fire: The Importance of Risk Management in High-Crime Housing

A recent shooting at the Parkway Village Apartment Complex in Memphis, TN, highlights the risks of guarding high-risk, low-income properties. The incident saw one man dead and another injured, and a security guard has now been charged with aggravated assault for his role in the altercation. He was subsequently released on a $30,000 bond pending a court appearance.

The property where the shooting took place is an affordable housing complex and considered by insurers to be a high-risk housing category. Crime rates in this neighborhood are more than five times the national average, with crime risk scores of 100 (the highest and worst possible score) for violent crime, property crime, assault, burglary, vehicle theft, robbery, and homicide.

Insurance is a complex issue for security firms. Carriers establish their policy premiums based on the risk level of the neighborhood, the industry the property is associated with (in the case of commercial property or schools), or local crime risk scores. The Memphis neighborhood where this shooting took place has a 20/20 hazard profile, which recognizes not only the extreme risk of persistent crime but also the high potential for liability arising from use of force and other issues.

Security firm leaders contracted to secure such premises must word their contracts carefully to address liability transfer and ensure they are adequately insured for the services provided.

It is essential to support such appointments with firm risk management policies that recognize the extreme hazard profile, defining policies and procedures to safeguard the financial and reputational integrity of the company.

Today’s article will outline essential strategies firms can apply to safeguard the company, its officers, and the residents they are assigned to protect.

Risk Management Strategies: Improving Safety and Reducing Liability

Risk management is an ongoing effort for security firms. Establishing clear policies for guards and management to follow protects guards and the public while helping to mitigate exposure to legal and financial risk.

Implement Elevated Safety Measures for Guards

High-risk properties, such as the Parkway Village, necessitate additional safety measures for guards. Contracts and associated rates should reflect what’s needed to support the security team on the ground, as they will require special equipment. Body armor, body cams, and weapons (lethal and non-lethal) are just a few examples of tools that should be deployed to ensure guards are adequately protected.

When body cameras are in use, it underscores the importance of having detailed, documented post orders to ensure officers do not deviate. In the Parkway Village case, armed guards were wearing body cams that clearly showed excessive use of force, which ultimately led to one guard being charged.

Define Post Orders Concisely

Post orders should be site-specific, as all properties have unique factors that can influence how they are secured. Here are a few examples of what a post order for a similar property should include:

·         Observe-and-report only

·         Notify law enforcement immediately on suspicion or observation of criminal activity

·         Establish clear limits of authority

·         Outline escalation procedures

·         Define documentation requirements

Articulating detailed post orders will reduce liability exposure, improve guard safety, and shield the company from legal action or insurance claims.

Addressing Risk Transfer in Security Contracts

Security contracts should contain indemnification clauses that transfer primary liability to the property owner or management for third-party criminal acts.

Firm liability should be restricted to negligent acts or deviation from agreed-upon post orders and should not hold the firm solely responsible for preventing all criminal acts.

Proactive Insurance and Risk Assessments

Security firm insurance policies are complex, and premiums are based on hazard classifications. Leaders must liaise directly with carriers to ensure they understand the variables that affect their coverage and premiums. Risk assessments help to reduce risk exposure and should inform accurate security contract pricing. Ultimately, it costs more to secure a high-risk property, and the firm should be compensated accordingly.

Review Historical and Current Crime Data

Crime statistics change frequently – in both directions. Management must stay up to date with current and past crime trends to determine whether risk management strategies are still valid. Should a property’s risk level rise, contracts, policies, and post orders must be reviewed and revised to ensure services, policies, and fees align.

Establish Strong Ties with Local Law Enforcement

Guards work closely with local law enforcement. In high-risk environments, they will likely see a lot of each other, so good relationships are essential. Establishing transparent and open communication channels with local police and first responders helps guards understand response patterns and will enhance the effectiveness of the security services provided.

Leverage Technology

Advanced technologies, such as surveillance cameras, AI-based weapons recognition, access control systems, drones, real-time monitoring platforms, robots, etc., provide essential support to guards in high-risk situations. Technology enhances safety and reduces risk, enabling faster response times and supporting visual observation and documentation.

Though these tools may be costly at the outset, they are a strong crime deterrent and are pivotal to providing evidence to back up investigations and liability claims.

Engage Stakeholders

Property managers and owners should be encouraged to engage in a security partnership. Firms should encourage property management to take an active role in securing their properties, such as installing a more robust security system, installing better lighting in dimly lit areas, or encouraging residents to report suspicious activity.

Prioritize Guard Training

Well-trained guards are confident, professional, and calm under pressure, and are well able to handle difficult people in challenging situations. Though we do not know the training status of the guard charged in the Parkway Village incident, we’d like to think that a trained, certified guard would not have ignored their post orders and used excessive force. Since the guard has been charged, scrutiny will fall on the company, and it’s likely a lawsuit will be launched against the firm. Only guards with elite training should be deployed into high-risk environments; doing so will reduce the potential for injury, liability, and legal action.

High Hazard Indexes Must Inform Proactive Risk Management

The shooting at the Parkway Village complex is just one of many examples of how high-risk areas can put the public, security guards, and their firms at risk. Firms with contracts in high-crime areas can protect their guards, reputations, and interests by applying risk management protocols like the ones we’ve described here today.

Addressing risk transfer in client contracts, ensuring guard safety, and enforcing in-house policies can help to mitigate liability and protect guards and firms physically, financially, and reputationally.

Leveraging statistical data, such as the Crime Risk Score Report, can help firms make informed decisions about deployments and equipment relative to the risk. Review contracts periodically against new crime data to ensure fees and services are appropriate.

Lastly, while firms must expect higher premiums from their insurers for high-risk properties, they are still insurable when adequate risk management policies are in place. Underwriters will want to see guard training policies, clear post orders, guard safety protocols, iron-clad contracts, and full awareness of criminal activity and related risks. Acknowledging these variables appropriately shows a commitment to best practices and will support continued coverage, even in high-crime areas.