Wrap Technologies (NASDAQ: WRAP) and XINSURANCE have announced a strategic partnership to develop and launch the WRAP Safe Response Program, a certified operating standard for organizations that employ or contract security personnel. The program aims to establish a documented standard for training, equipment, and response before encounters escalate, targeting a U.S. workforce of approximately 1.28 million security guards across corporations, healthcare systems, schools, retailers, hospitality properties, transportation networks, critical infrastructure, and other environments.
The initiative follows the June 15 Bureau of Alcohol, Tobacco, Firearms and Explosives ruling that classified the BolaWrap 150 as neither a firearm under the Gun Control Act nor a weapon under the National Firearms Act, removing a federal barrier to its use as an early intervention option for unarmed security personnel. This regulatory clarity is a pivotal development, as it opens the door for private security firms to adopt the device without the legal complexities associated with firearms.
Under the partnership, WRAP will own, certify, and audit the Safe Response standard, while organizations can adopt it for their own security operations and require contracted security providers to certify personnel under the program. XINSURANCE will handle insurance activities contemplated by the program, including product design, underwriting, pricing, placement, policy servicing, and claims. This division of responsibilities is designed to create a comprehensive framework that not only standardizes training and equipment but also addresses liability and risk management, which are critical concerns for private security operations.
WRAP stated that the model expands its addressable market beyond law enforcement by enabling enterprises carrying security-related risk to establish the standard across their properties and contracted security operations. This is a significant strategic shift, as it positions Wrap to tap into the large and growing private security sector, which has historically been underserved by non-lethal technology providers. The program’s certification aspect is particularly important, as it creates a marketable differentiator for security firms that adopt the standard, potentially driving demand for BolaWrap devices and related training.
The BolaWrap 150 is a non-lethal restraint device that deploys a multi-sensory distraction of sight and sound as a first response, followed by a non-lethal restraint if further escalation is required. It does not shoot, strike, shock, or incapacitate; instead, it helps officers and security personnel strategically operate pre-escalation on the force continuum, reducing the risk of injury to both officers and subjects. The device is already used by over 1,000 agencies across the U.S. and in 60 countries, and it is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST).
For the private security market, the Safe Response Program could address a critical need for standardized, non-lethal options that mitigate risks in settings such as hospitals, schools, and retail environments, where encounters with individuals in crisis are common. By providing a certified standard, WRAP and XINSURANCE are not only creating a new revenue stream but also potentially improving safety outcomes across a wide range of industries. The partnership reflects a broader trend toward integrating technology and insurance to manage liability, which could set a precedent for other public safety technology providers.
As the program rolls out, its success will depend on adoption by security firms and enterprises, as well as the effectiveness of the certification process in ensuring consistent quality. The involvement of XINSURANCE, which specializes in niche insurance products, suggests that the program will include tailored insurance solutions to address the unique risks associated with non-lethal security tools. This integrated approach may be a key factor in convincing risk-averse organizations to embrace the standard.
In summary, the WRAP Safe Response Program represents a strategic move by Wrap Technologies to expand its market beyond law enforcement and into the private security sector, leveraging recent regulatory clarity and a partnership with an insurer to create a comprehensive standard. The implications are significant: it could transform how private security operations approach de-escalation and non-lethal intervention, potentially reducing injuries and legal liabilities while opening new growth opportunities for Wrap.
