Private Investigator Insurance

Private investigators (PIs) perform multiple functions for companies or individuals in the areas of information gathering and security. They also work for attorneys, insurance companies, and public agencies. All this activity comes with inherent risks that require private investigator liability insurance for the individual or the firm involved.

An independent insurance agent can help you find the right private investigator insurance or PI insurance for the job. They'll get you equipped with each type of coverage necessary. But first, here's a closer look at PI insurance, what it covers, and why it's necessary.

Why Is Private Investigator Insurance Necessary?

A great deal of the work done by private investigators, also known as private detectives in some areas, involves researching information or developing data that will be used by others to make significant decisions. These can include choices regarding hiring or firing, marriage, contracts, or whether to conduct business with another party.

As a private investigator, you may find yourself responsible for a financial loss to another person or business in a number of ways. For example, you may face this risk if:

You do an inadequate job of researching a given situation
You provide information that results in a poor decision by a client
You neglect to provide critical information that results in a client's choice of a contractor who performs inadequate work

These situations would not be covered by a general liability insurance policy because no bodily injury or property damage is involved. Only a professional liability insurance policy would protect you in these scenarios.

Errors and omissions risks are inherent in any business that provides consulting services or information and advice, and this is particularly true of PIs. Professional liability insurance for private investigators may be one of the most critical coverages to protect yourself against lawsuit exposures and expenses.

Private Investigator and Private Detective Facts

Here's an overview of some details related to private investigator and private detective professions:

At the end of last year, there were a reported 38,800 private investigators and detectives working in the U.S.
Almost all states require a license to act as a private investigator.
PIs cannot legally access:
- Banking information and financial records
- Telephone records
- Criminal records
In the U.S., using "pretexting" (pretending to be someone you are not, such as a law enforcement official) to gain access to information is illegal.
A number of risky methods of gathering information that are popular in movies can get a private investigator in trouble, either with law enforcement or with an individual who files a personal injury lawsuit.

PIs are specially trained to deliver results that businesses and private clients can trust. However, these professionals need insurance coverage they can trust in the event of a disaster. That's why having PI insurance is critical.

Who Needs Private Investigator or Private Detective Insurance?

Private investigators and detectives work in a surprisingly large number of areas. You may need PI insurance if you perform any of these functions of professionals in the private investigator and detective field:

Corporate executive and celebrity protection
Pre-employment verification
Background checks
Computer crimes
Computer forensics
Legal work, such as building cases for attorneys
Insurance claims investigation

Investigating fraud and employee dishonesty
Missing persons
Pre-marital screening
Investigating alleged infidelity
Skip trace work
Shoplifting surveillance
Hotel security

Individuals and professionals who perform any of these job duties can work with a local independent insurance agent to get set up with the ideal amount of private investigator or private detective insurance.

What Does Private Investigator Insurance Cover?

The right insurance for private investigators can vary from one business to another. However, it's critical to have coverage that's tailored to your industry to increase your chances of being compensated for lawsuits and more. PIs may need a number of different insurance policies to completely cover their risks, including the following:

Professional liability insurance: Also known as "errors and omissions" coverage, this covers professional errors or negligence, such as failing to provide critical information that results in a loss for your client.
General liability insurance: This covers your risk of bodily injury or personal property damage to another person or business in the course of doing business. Coverage often covers claims of libel or slander.
Commercial property insurance: This covers business property, including buildings, equipment, tools, and inventory, from various losses including theft, vandalism, and fire damage.
Commercial auto insurance: This can cover vehicles used for business purposes against many types of loss, including accidents, lawsuits, theft, and vandalism.
Workers' compensation insurance: This can cover expenses related to time lost from work and medical costs after a job-related injury or illness suffered by an employee.
Commercial umbrella insurance: This extends your underlying liability coverage limits to $1 million or greater to offer increased protection against expensive lawsuits.
Assault and battery coverage: This can cover costs if you are accused of physically harming another person, including lawsuit expenses.
Invasion of privacy coverage: This can cover third-party claims of an invasion of privacy, including lawsuit expenses.
Fidelity bonds: This coverage protects you against the deeds of untrustworthy employees, such as dishonesty in the form of theft, embezzlement, or forgery.

An independent insurance agent knows which insurance companies and brokers underwrite insurance policies tailored to the needs of PIs and private detectives and those that have the best premium rates. Work with an independent insurance agent to get equipped with affordable PI insurance today.

Why Private Investigators Need Assault and Battery Coverage

Some private investigator operations can involve situations where physical confrontation may be necessary. For example, you may face this risk if you are involved in any of the following work:

Executive and celebrity protection
Retail store security
Hotel security
Domestic issues investigation

If you're accused of assault or battery to a client or third party, you could end up facing a lawsuit. Make sure to look for a PI insurance policy that includes assault and battery coverage.

Many insurance policies that include general liability insurance may have an exclusion for related claims. Work with an independent insurance agent to find the coverage you need to protect you from this potential risk.

PI Coverage for Care, Custody, and Control Situations

Some of the work done by private investigators and detectives involves guarding or securing client or business property. For example, a department store might hire you as a PI if it's been experiencing substantial inventory shortages and suspects its own employees. As the private investigator hired for the job, you may have access to the entire store. A difficult insurance situation can arise if you inadvertently cause damage to some of the store's property while searching for evidence.

A standard general liability policy typically excludes liability for property in the "care, custody, or control" of the insured policyholder. The solution is to work with your independent insurance agent to create an amendment to the basic policy, providing a sub-limit for property damage otherwise excluded by the care, custody, and control provision. It's critical to work with a knowledgeable agent who specializes in commercial coverage to assist you with this and any other concerns pertaining to private investigator insurance coverage.

An Independent Insurance Agent Can Help You Find the Right Private Investigator Insurance

As a private investigator, you may be called upon to perform a wide range of services, many of them involving potential exposure to legal action if you make a mistake or do not complete your duties as expected. Only a well-designed insurance program will offer you the protection you need.

An independent insurance agent can assist you in comparing quotes and coverage options for private investigator insurance from multiple carriers. And down the road, your agent can help file claims for you and update your coverage as necessary.

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