What Should You Look for in a Security Company Contract?


Quick Answer

Elements of a solid security contract include guard staff requirements and a defense and indemnification clause. Security contracts should also include details about guard payment rates and benefits and a cancellation clause. If the terms allow hiring security subcontractors, it's a good idea to extend the terms of the contract to include subcontractors.

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Full Answer

Security guard staff requirements should be a detailed part of any security contract, and contract terms should specify what basic qualifications are expected of guard staff. For instance, the contract can state that guards must show proof that they are licensed by the state to perform security duties. Other contract requirements might include mandatory periodic background checks and training. Companies hiring security contractors should include a defense and indemnification clause, which protects the company from lawsuits due to the actions of the security guards. A "hold harmless" clause ensures the security company is responsible for any legal expenses that arise from defending a lawsuit.

Contracts can be specific about the security guard hourly pay rates, and also specify benefits. Typically, guard wages amount to around 65 percent of a security company's billing rate. The cancellation clause is a crucial contract element that specifies how the parties can legally end the contract. Security contracts commonly include a 30-day notice for ending the contract.

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