Wrap Technologies, Inc. (NASDAQ: WRAP) and XINSURANCE have announced a strategic partnership to develop and bring to market 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 change is pivotal, as it allows the BolaWrap to be deployed more broadly, potentially reducing the risk of injury in non-criminal calls and providing a safer alternative to higher-force options.
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. 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 partnership is significant for several reasons. First, it addresses a critical gap in the private security sector, which often lacks standardized training and response protocols. By creating a certified standard, WRAP and XINSURANCE aim to elevate the professionalism of security personnel and improve outcomes in potentially volatile situations. Second, the program leverages the BolaWrap 150, a non-lethal restraint device that uses a multi-sensory distraction of sight and sound as a first response, followed by a non-lethal restraint if further escalation is required. This approach reduces the risk of injury to officers, subjects, and the community, aligning with the growing demand for non-lethal tools in public safety.
The BolaWrap 150, used by over 1,000 agencies across the U.S. and in 60 countries, is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST). The device is not pain-based compliance; it does not shoot, strike, shock, or incapacitate, but rather helps officers strategically operate pre-escalation on the force continuum. The WRAP Safe Response Program could extend these benefits to the private security market, which has historically had fewer non-lethal options.
For Wrap Technologies, this partnership represents a strategic move to diversify its revenue streams and expand its customer base. The company's complete public safety portfolio includes the BolaWrap 150, Wrap Reality immersive training platform, WrapVision body-worn camera system, WrapTactics training programs, and next-generation C-UAS solutions. By entering the private security market, WRAP can capitalize on the growing need for safety technologies in sectors such as healthcare, education, and retail, where security incidents are a growing concern.
For XINSURANCE, the partnership offers an opportunity to design and underwrite insurance products tailored to the Safe Response Program, potentially reducing liability for organizations that adopt the standard. This could lead to lower insurance premiums for certified organizations, creating a financial incentive for adoption.
The implications of this partnership extend beyond the two companies. If successful, the WRAP Safe Response Program could set a precedent for the private security industry, encouraging other technology providers to develop similar standards. It could also influence regulatory bodies to consider non-lethal tools more favorably, further expanding the market for such devices.
In summary, the partnership between Wrap Technologies and XINSURANCE to launch the WRAP Safe Response Program marks a significant step toward standardizing security protocols in the private sector. By leveraging the BolaWrap 150 and the ATF ruling, the program aims to improve safety outcomes for security personnel and the public, while also opening new market opportunities for Wrap Technologies. As the program rolls out, it will be interesting to see how it is adopted and whether it becomes a benchmark for the industry.
