Physical security has traditionally been framed as an operational cost — necessary, but not something finance departments track closely. That’s changing fast. The reason is showing up on renewal notices. Insurance carriers have realized that physical security is a quantifiable, priceable risk. They’re increasingly treating documented security measures as a condition of coverage.
A recent industry outlook on what security directors need to know heading into this year points to active shooter and violence-related insurance premiums climbing by double digits annually. That’s a departure from years past, when a business could largely self-attest to its security posture on an application. Underwriters are asking harder questions and, in some cases, sending their own assessors to verify what’s in place.
This shift is moving organizations toward the kind of infrastructure that shows up well on paper and performs well in practice: modern access control systems with credential logs, biometric or mobile-wallet-based authentication that replaces easily shared keycards, and video systems capable of producing an audit trail rather than just a live feed. Insurers favor security investments they can verify after the fact, which means “we have cameras” is no longer a sufficient answer. Carriers want to know whether that footage is retained, monitored, and tied to an access control system that can reconstruct who was where and when.
As insurers push companies toward biometric authentication and more granular digital tracking of who enters a building and when that same push runs headlong into growing public concern about how biometric and location data is collected, stored, and protected. Security directors now have to satisfy underwriters’ appetite for verifiable, granular access data while still being thoughtful stewards of that same data. A breach of sensitive biometric records carries its own liability exposure.
The practical takeaway for any business evaluating its next insurance renewal: get ahead of the underwriting conversation. Document your access control policies, retain your surveillance footage responsibly, and be ready to show an insurer what your security program actually does. Businesses that treat their physical security stack as an insurance asset, not just a deterrent, will be the ones who see their premiums hold steady while others absorb double-digit increases.Sources: Xtractone, “What Security Directors Need to Know About 2026” (xtractone.com)