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Do Armored Vehicles Need Insurance?

May 3, 2021 6 Min read

In addition to coins and cash, armored vehicles move many other items, including bullion, gems, and jewelry. The armored car industry even transports pharmaceuticals, gadgets, and fine arts. Increased theft has been recorded around these items in recent years. That’s why a more secure environment for them and the vehicle itself during moving is crucial. 

There’s a need to ensure that whatever item that an armored car transports will arrive at their destinations safely. And it’s the responsibility of the person who owns and operates the armored vehicle business. 

Simply saying, car owners and operators may face many risks. There’s a need to ensure that your vehicle is insured if you want protection from those risks.  

Read on to find out why armored cars need insurance and know what types of insurance policies are available that can help you safeguard your vehicle.

Armored Car Insurance: Is It Really Necessary? 

People trust you to deliver their items to their intended destination safely. It’s true, no matter what type of things your armored car moves. The bad news is that there’s always a chance for something to go wrong no matter how many precautions are in place. 

Armored Lexus LX 570

Criminals often target higher-end luxury vehicles because they’re known to carry valuable items. There’s also an accident risk besides the risk of theft. For example, a driver could skid out after getting caught on an ice patch, damaging someone else’s property as a result. Not to mention that it may also result in damage to the items that the truck or van are carrying. 

Note that it’s also possible a lawsuit could be filed against you as the owner or operator of the vehicle. It happens when an employee slips and falls while making a delivery. They may site a personal injury if they get injured. A property damage claim may also be filed by a third party against your company. It’s likely to happen in cases where an item was damaged due to one of your staff members slipping and falling while working. 

Armored Toyota 4Runner

Vehicle owners and operators indeed face various types of risks, and the ones mentioned above are only some examples. 

These risks carry astronomical costs if the unexpected does occur. Instead of paying for the damages yourself, your insurer will cover the expenses if you have invested in the right armored vehicle insurance coverage type. 

Bulletproof Landcruiser Armormax

So why do armored car services need insurance? Armored car insurance helps to prevent your company from suffering from significant losses financially. It can even possibly help you avoid losing the whole business. Visit websites of companies that offer affordable insurance policies like if you’re ready to protect your armored vehicle and your organization.

Insurance Policy Options for Armored Vehicles 

Several factors affect the specific coverage type that an armored car service provider needs. They include the specific types of items you move, the size of your business, and your location. However, there are vital policies that all armored vehicle businesses will require. They include: 

  • General Liability Insurance – Insurance coverage for general liability is one of the policies you need. Third-party injury and accident claims are under this insurance type. It would help your company pay for lawsuit-related expenses. A personal injury lawsuit may be thrown at you if a vendor slips and gets injured while delivering items to the office where your company operates.
  • Commercial Auto Insurance – This coverage is another investment you have to make whether you only have one armored vehicle or an entire fleet of armored cars. The insurance company will help you pay for all related expenses if one of the trucks you own is involved in an accident. Medical care that affected people might face, damages to the property while your vehicle is moving, and damages to someone else’s property are also part of commercial auto insurance coverage. 
  • Commercial Property Insurance – Armored car businesses also need commercial property insurance. This type of coverage will pay for any related losses if the garage where your armored vehicle is parked gets damaged by theft, an act of vandalism, a storm, a pipe burst, or fire. Employee possessions, office equipment, and any other items within the building that may be lost will also be covered as part of the commercial space’s overall physical structure.
  • Workers’ Compensation – Employers are responsible for providing their staff with the safest work environment possible. It’s true for anyone that works for you as an employee, including office staff and, of course, armored vehicle drivers. Workers’ compensation will help your company pay for the medical care your staff members may require if they get involved in a work-related accident. If your employees are unable to work while they’re still healing, workers’ comp will also cover lost wages. 

As an armored car company owner and operator, the abovementioned insurance types are only some of the coverages that you’ll need to have or carry.

Armored Car Insurance Cost

General liability insurance policies that cover small armored vehicles have an average price that ranges from US$70 to US$500 per month. Of course, the amount varies, depending on your experience, claims, revenue, number of trucks, and location.

Risks And Exposures That Armored Vehicles Face Daily 

Do armored vehicles need insurance? Yes, because of the following risks and exposures: 

  • Crime – This exposure is from robbery, burglary, and even employee dishonesty. Besides getting insurance coverage, two-way communication devices, GPS, cameras, and alarms should be equipped to armored cars transporting valuable items to reduce the likelihood of a crime.
    All employees in an armored vehicle business handling valuable items, especially money, should also undergo background checks to uncover their criminal history (if there’s any). Separation of duties between people who handle the ordering, billing, deposits, bank statement reconciliations, and disbursements is also crucial.
    In addition, regular outside audits should be conducted. Security is critical if clients’ property will be kept on-premises. Therefore, an alarm system that’s capable of automatically and directly reporting to the police department or a central station should be in place. Surveillance cameras, reinforced walls, steel doors, and other physical barriers are also necessary.

Commercial Auto Exposure – There’s a high commercial auto exposure among armored trucks because heavily-armored vehicles can cause extensive damage to the passengers of another automobile during a collision. Even the other car or truck can be severely damaged. That’s why besides getting insurance coverage, companies must ensure that their drivers undergo special training to obtain appropriate licenses. It’ll help them learn how to handle a vehicle in inclement weather and heavy traffic. They’ll also know about evasive maneuvering.

Furthermore, two-way communication devices, GPS, cameras, and alarms must be installed in the armored car. Regular maintenance is also crucial so records can be kept in a central location properly.
Note that obtaining a replacement is expensive when a vehicle gets damaged in a collision, so preventing accidents from happening is essential. Should a crash occur, being insured helps pay for any associated costs. 

  • Property Exposure – This risk is limited to cooling and healing as well as electrical systems at the office. Smoking should be prohibited if the armored car is fueled and serviced on promises because the garages used for storage can increase the exposure. Of course, being covered by insurance helps a lot in any unfortunate event while the vehicle is stored on-premise. 
  • Inland Marine Risk – This exposure is from valuable papers and records, gun floater, goods in transit, computers, and communication equipment. It also includes bailees for other people’s property under the business’s care and client accounts receivable billing. Adequate coverage for valuable items and high values of cash is vital.
    To prevent loss, security while loading and unloading and during transport are crucial. There should also be procedures for handling goods that all staff members should follow. Background checks on employees are also necessary. Burglar-resistant and fireproof vaults or safes should also be in place when storing valuable items and cash on the premises.
    When transporting extremely high-value items, an escort vehicle is ideal. Guards should also get the client’s signature and ensure that amounts picked up and delivered are verified.

Exposure Of Workers – Insurance coverage also helps in providing compensations for employees that get injured while performing their responsibilities. This risk is high because robbers can target individuals within an armored vehicle due to the valuables that they handle.
It’s also essential to note that items that armored cars move can be heavy, which may lead to employees getting injured too. There should be adequate training in the correct lifting techniques to prevent back injuries. Workers and guards should also receive the necessary tools to help make the loading and unloading of valuables easier.

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Protective measures against armed robbery must also be taken for employees who deal with large amounts of money at a central facility. It should also be the case for guards who help during valuable item pick-ups and deliveries. If possible, all staff members wear body armor for protection to prepare for potential attempted robberies and to prevent sustaining injuries. Not to mention, guards may also suffer from psychological and physical stress after being confined in the armored vehicle for much of the day. Even only the possibility of armed conflict can be stressful.

Interior Armored Ford Transit Police Van

Even the simplest of tasks like coin handling and wrapping may result in repetitive motion injury, so insurance coverage is a must-have. Note that time-schedule and other driving-related pressures must also be avoided because they increase the risk of road accident injuries.

Last but not least, safety or protective equipment should be provided to armored truck personnel even when they’re only working at the repair facility. That’s because they’re also exposed to respiratory ailments resulting from inhalation of contaminants like fuel, burns from welding, and cuts from auto repair tools when inside these facilities.

The Bottom Line 

All armored cars or trucks that transport valuables need insurance. That’s because they’re at risk or exposed to dangers not only when moving an item but also when on-premise doing tasks related to the management of goods for transport and the repair and maintenance of the vehicle. Speak to someone who understands the high risks and unique exposures that armored cars and trucks face, so you have an idea of which coverage or policy is right for your company.

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