Private Investigator Insurance, Detective Agency Insurance, PI Insurance, Security Consultants Insurance and Security Guards Insurance

Private Investigator Insurance, Detective Agency Insurance, PI Insurance, Security Consultants Insurance and Security Guards Insurance

Yergey Insurance is pleased to have provided insurance to private investigators, computer forensic, security consultant, detective agencies, polygraph investigators and security guard and all related industries insurance for almost 20 years. We have been working along with local and state organizations and national vendors to provide outstanding products and services to their membership and to the industry at large.

Yergey Insurance offers coverage for General Liability, Professional Liability (Errors and Omissions), Workers Compensation, Commercial Auto, Property Coverage, Bonds, and many more...

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Up-Coming Conventions and Conference






October 29-30, 2014

ACBI (Association of Certified Background Investigators)

2014 Annual Conference National Seminar

National Conference Center/Landsdown, Leesburg, VA


November 12-14, 2014

NCAPI (North Carolina Association of Private Investigators)

2014 Fall Training and Educational Conference

Harrah's Cherokee Casino Resort, Cherokee, NC


                                         Call Today for a Quotation

                             (800) 683-1226



Questions & Answers

With the current economic downturn in what ways have you seen insurance companies cut costs and has it impacted policies?

Insurance policies have not been negatively impacted by the economy.  If anything, we have seen rates lower and competition become more intense.  We only hope that the claims departments are not cutting corners on claims to save money but right now they seem to be working as well as ever.  In times like these the carriers tend to fight more and give away settlements only when they have to.

How do you know if an insurance company is any good? Please explain the AM Best and Moody's ratings.

Insurance companies are rated for financial stability by AM Best and Moodys and several other rating agencies.  In almost all cases, a minimum A- is as safe rating for insurance carriers in this line of business.  Anything lower is questionable and should be reviewed to see if it the rating is headed up or down before accepting a quote.  As for carriers being any good, unfortunately you have to take our word for it or have a claims experience to see for your self. 

What information does an agent need to determine the right coverage for a company?

The agent needs to know the type of work performed, how many involved, subcontractor situations, and specifics about where and how much business your firm handles.  More specifically, details are needed about the very specific type of work performed and for whom to determine if a policy will respond appropriately.

Many investigators are sole proprietors. Do their insurance needs change when they take on part-time employees?

Insurance needs are constantly changing.  As a sole proprietor, you have to be careful for a claim by the employee can dramatically affect your personal situation.  Having a corporate shell in place is helpful and does go a long way towards protecting an owner.

Do most policies cover sub-contractors?

Most policies cover your work and your interests for work done by subs.  Some policies can be endorsed to add the specific sub as an “employee” and extend coverage to that firm or person for specific work.  We encourage you to have your subs insure themselves so that they have coverage in place that protects them and you do not become their first line of defense.

Most personal car insurance policies do not cover using your car for business. If you are in an car accident with your personal vehicle while doing PI work would your business insurance cover repair and or medical bills?

General Liability and errors and omissions coverage will not cover injury or damage to others or yourself or your vehicle in any case.  Commercial auto is required for a firm to have protection for an accident that causes harm or damage to another party.  This can be in the form of an owned auto policy or hired and/or non owned auto endorsements.  This protects the firm for suits alleging auto liability against your firm and your employees.  It is imperative that the employee and yourself have personal auto coverage in place to protect your personal exposure.  The commercial auto and hired and non owned auto programs are not designed to replace the liability of the person causing the accident unless there is a vehicle listed on the policy

In general, does a company's liability insurance automatically cover all employees, full or part-time? Can a registered PI get their own liability insurance to protect them when working for multiple companies part-time?

Liability insurance does not automatically cover all employees unless the policy addresses all types of work.  For instance, an investigator that provides armed security might have a gap in coverage if their policy is not designed to reflect both exposures.  If properly written, all part time and full time employees should be covered for their acts on behalf of the firm.  If a PI wants to get their own protection that is helpful but can also conflict when claim handling is done.  In some cased your personal policy might only be excess over the other insurance or might coordinate benefits so that you don’t receive benefits higher than you would have on a single policy.  In addition, these policies might be pulled in to protect the firm you work for even thought that was not the intent.

DCJS has proposed regulations that would allow armed security officers access to "patrol rifles" while on duty. Taking into account that rifles are more lethal over greater distances than handguns and shotguns and the potential for innocent people to be hurt when using a rifle is greater, do you believe this new regulation will boost the cost of insurance to companies offering armed security officers? 

Patrol Rifles – this sounds like a good idea and might be necessary in some cases to protect the innocent.  However, this does increase the exposure and I am sure that carriers will consider this when quoting.  I would not expect a large increase but would expect a different way of handling this aspect.

Are lawsuits against private investigators trending up or down?

Lawsuits are trending up – there are several reasons.  We are seeing the last of the era that it was assumed that insurance companies have all the money.  Carriers are now being more frugal and not allowing persons to just get money for complaining.  This is allow the trend to go down in the future for claimants will realize that the carriers are not giving in.  In addition, a down economy does send people running to any source of income, and lawsuits can be that source.  We do see more frivolous or petty suits during this type of time.

What are the most common things investigators do that get them sued?

Most common are personal injury and e&o claims.  Defamation and invasion or privacy are the big items that we see the most of these days.  In addition, we have seen claims for careless errors while doing background checks.  These can lead to firing or lack of hiring and the claim can be significant.

In a lawsuit does the investigator get to pick the lawyer that represents them? 

Most policies do not allow the client to pick their lawyer.  However, suggestions are accepted and this is reviewable with the carrier when the claim is filed.

What is a "Reservation of Rights" letter?

Reservation of rights is a term that the carriers use when it still needs to be determined if coverage will apply to a certain claim.  With and ROR letter the carrier will defend you negligent or not until it can be determined whether or not they will cover the allegations as a claim under the policy.  This letter will usually neither accept nor deny coverage but put everyone on notice that there remains questions as to the validity  of a claim or the applicability of a claim to your policy.

Can the insurance company settle without my consent?

Most policies allow the insurance company to settle without your consent.  Some do ask and all with keep you informed.  However, most will advise you of settlement and look for your acceptance and support.

What actions can cause an insurance company to cancel a policy?

An insurance company can void a policy when there is material representation – lying on the app; failure to pay or continued late pay can create a situation where the carrier will not continue to reinstate; The carrier can leave the state or pull out of the line of business and advise you to move on.  In most cases, the reasons are that the client was not truthful or did not offer information that would have changed the way the policy terms would have been originally quoted.

Can you cancel a policy at any time without penalty?

If you cancel for going out of business or non pay there is usually no penalty.  If you cancel midterm in order to move to another carrier the company you are leaving is permitted to charge at 10% penalty of the unearned premium left on the policy.  This is in addition to any fees or taxes that might be involved.

Not all coverage types are available on all states)