Wrap Technologies, Inc. (NASDAQ: WRAP) and XINSURANCE have announced a strategic partnership to develop and launch the WRAP Safe Response Program, a certified operating standard designed for organizations that employ or contract security personnel. The program aims to establish a documented benchmark for training, equipment, and response protocols 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 pivotal, as it allows the BolaWrap to be deployed more broadly in private security settings, potentially reducing the risk of injury and liability.
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 collaboration is expected to expand WRAP's addressable market beyond law enforcement by enabling enterprises carrying security-related risk to establish the standard across their properties and contracted security operations.
The program's significance lies in its potential to professionalize the private security industry, which often lacks standardized training and equipment protocols. By creating a certified standard, WRAP and XINSURANCE aim to mitigate risks associated with security encounters, potentially reducing legal exposure and enhancing safety for both security personnel and the public. The partnership also leverages XINSURANCE's expertise in specialized insurance products, which could make the program more attractive to organizations seeking to manage liability.
For WRAP, this move represents a strategic diversification beyond its core law enforcement market. The company's flagship product, the BolaWrap 150, is a non-lethal restraint device that deploys a multi-sensory distraction followed by a non-lethal restraint, designed to create time and distance in non-criminal calls. Used by over 1,000 agencies across the U.S. and in 60 countries, the BolaWrap is backed by training certified by the International Association of Directors of Law Enforcement Standards and Training (IADLEST).
The Safe Response Program could also benefit from WRAP's broader public safety portfolio, including the WrapReality immersive training platform and the WrapVision body-worn camera system. These tools could be integrated into the program to enhance training and accountability, further strengthening the standard.
Industry observers note that the private security sector has long faced challenges related to inconsistent training and varying levels of preparedness. By introducing a certified standard, WRAP and XINSURANCE are addressing a critical gap, potentially setting a new norm for security operations. The program's success will depend on adoption by major corporations and security firms, but the partnership's structure—with WRAP owning the standard and XINSURANCE managing insurance—provides a clear value proposition for risk-averse organizations.
As the program rolls out, it will be important to monitor how it is received by the market and whether it leads to broader adoption of non-lethal tools in private security. The ATF ruling has already removed a significant hurdle, and with the backing of an insurance partner, the Safe Response Program could become a benchmark for the industry. For now, the announcement signals a forward-thinking approach to public safety that extends beyond traditional law enforcement boundaries.
