Negligent Security Cases, Doe v. Kmart Corp: Protect your Company with Central Insurance Agency

Negligent Security Lawsuits: What Security Companies Need to Know

The security industry is growing fast. Demand for professional security guards and monitoring services has surged across the country, driven by rising concerns over public safety, retail theft, and liability exposure at commercial properties. But with that growth comes a critical question every security business owner must ask: Are you properly protected if something goes wrong on your watch?

At Central Insurance Agency, we work with security companies across the United States to build custom insurance programs that address the very real — and very costly — risks this industry faces.

The Reality of Negligent Security Lawsuits

Negligent security claims arise when a property owner or security provider fails to take reasonable steps to prevent foreseeable criminal activity, and someone is harmed as a result. These lawsuits are more common than many business owners realize, and the verdicts can be financially devastating.

According to data from Negligent Security Attorney, the breakdown of negligent security lawsuits by claim type looks like this:

• Assault and battery — 42%
• Sexual assault and rape — 26%
• Wrongful death — 15%
• Robbery — 9%
• False imprisonment — 4%
• Miscellaneous (arson, home invasions, carjacking) — 4%

What stands out here is that the vast majority of these claims — nearly 70% — involve violent physical crimes. These are not slip-and-fall situations. These are cases where a jury is asked to decide whether a security company or property owner could have — and should have — done more to protect a person from serious harm.

A Case That Illustrates the Stakes

In Doe v. Kmart Corp. (South Carolina, 1997), a woman leaving a K-Mart store was abducted from the parking lot and subjected to a violent assault lasting 24 hours. She sued the store, arguing that Kmart had failed to provide adequate security despite being fully aware that a nearly identical attack had occurred in the same parking lot previously.

The jury agreed. The court found that because of the documented history of violent crime at that specific location, a future attack was entirely foreseeable — and Kmart had done nothing meaningful to prevent it. The plaintiff was awarded $600,000 in damages.

This case illustrates a principle that comes up repeatedly in negligent security litigation: prior knowledge of criminal activity creates an obligation to act. If a business or security provider is aware of a pattern of crime and fails to respond with reasonable precautions, that inaction can be treated as negligence in a court of law.

What This Means for Your Security Business

If your company is contracted to provide security services at a property, you may share in the liability if an incident occurs — even if the property owner is the primary defendant. Plaintiffs and their attorneys often pursue every party involved, including:

• The security firm that staffed the location
• The individual security officer on duty
• The property or business owner
• Any monitoring or alarm company involved

This is why generic business insurance is rarely sufficient for security companies. You need coverage that is specifically structured around the risks of your industry.

The Right Insurance Coverage for Security Companies

A comprehensive insurance program for a security agency typically includes:

General Liability Insurance — Covers bodily injury and property damage claims arising from your operations. This is the baseline, but it is rarely enough on its own.

Professional Liability / Errors & Omissions (E&O) — Covers claims that your company failed to perform its security duties adequately. This is essential for security firms, as negligence claims often fall into this category.

Assault & Battery Coverage — Many standard GL policies specifically exclude assault and battery incidents. For a security company, this is a critical gap that must be addressed with a dedicated endorsement or standalone policy.

Workers’ Compensation — Security officers face real physical risks on the job. New York State requires workers’ comp coverage, and claims in this industry are not uncommon.

Commercial Auto Insurance — If your guards use company vehicles or personal vehicles for patrol, you need proper commercial auto coverage.

Umbrella / Excess Liability — Given the size of verdicts in negligent security cases, a standard policy limit may not be enough. An umbrella policy provides an important additional layer of protection.

Don’t Wait for a Lawsuit to Find Out You’re Underinsured

The Doe v. Kmart case involved a single incident at a single location. A $600,000 verdict, while significant, is not uncommon in negligent security litigation — and cases involving wrongful death or severe injury can reach into the millions. Without the right coverage in place, a single lawsuit has the potential to end your business.

At Central Insurance Agency, we’ve been helping businesses across the country navigate complex commercial insurance needs for over 25 years. We understand the specific exposures security companies face, and we know how to build a policy that actually covers them.

Contact us today for a free quote and let us put together a custom insurance solution designed specifically for your security business.