Signing a security contract without proper due diligence is like buying a car without checking under the hood; you might not realize what you’re getting until it’s too late. And when you’re choosing a Security Guard Company in Los Angeles, where over 77,500 security guards protect businesses across the metro area, and the security market has surged to $8.60 billion in 2025, making the right decision is critical. I’ve seen too many Los Angeles business owners rush into contracts only to discover hidden fees, undertrained guards, or companies that disappear the moment you need them most. Whether you’re securing a downtown LA retail store, a Pasadena office building, or a Santa Monica property, this 12-point checklist will help you avoid costly mistakes.
Here’s the thing: security company in Los Angeles aren’t created equal. Some excel at protecting high-end retail, while others specialize in corporate campuses or construction sites. The key is knowing exactly what to verify before signing on the dotted line. Let’s dive into the essential checklist that could save you thousands and protect what matters most.
Why Los Angeles Businesses Need This Checklist in 2025
Los Angeles presents unique security challenges that demand careful vendor selection. While overall violent crime has decreased in LA County, businesses still face significant threats. Retail theft jumped 39% in 2023, reaching two-decade highs, and commercial property crimes remain a persistent concern across the region.
Add California’s strict regulatory environment into the mix, and you’ve got a situation where choosing the wrong security company in Los Angelesdoesn’t just risk inadequate protection; it could expose you to serious legal liability. That’s why this checklist matters.
The 12-Point Checklist: What to Verify Before Signing
1. Verify Active BSIS Licensing
This is absolutely non-negotiable. Every legitimate security company operating in California must hold an active Private Patrol Operator (PPO) license from the Bureau of Security and Investigative Services (BSIS). Don’t just take their word for it, use the BSIS online license lookup tool to verify:
- License status (active, not expired or suspended)
- The company’s legal name matches what’s on the contract
- No recent disciplinary actions or complaints
- Qualified Manager registration is current
Red flag alert: If a company hesitates to provide their license number or claims they’re “in the process” of getting licensed, walk away immediately.
2. Confirm Comprehensive Insurance Coverage
Request certificates of insurance (COIs) directly from their insurance provider, not photocopies from the company. At a minimum, they should carry:
- General liability insurance: $1-2 million minimum coverage
- Workers’ compensation: Mandatory in California
- Professional liability insurance: Covers errors and negligence
- Automobile liability: If mobile patrols are involved
Ensure your business can be listed as an additional insured on their policy. This protects you if something goes wrong on your property.
3. Review Guard Training Standards and Protocols
California requires 40 hours of BSIS-approved training for security guards, but that’s just the baseline. Ask these specific questions:
- What ongoing training do guards receive beyond state minimums?
- Do guards complete CPR/First Aid certification?
- What de-escalation and conflict resolution training is provided?
- How often are refresher courses conducted?
Companies investing in comprehensive training programs typically have lower turnover rates and more professional guards. For armed security, verify the additional 14-hour firearms qualification and ongoing range requirements.
4. Examine Background Check Procedures
BSIS requires criminal background checks through the DOJ and FBI databases, but thorough companies go further. Verify they conduct:
- Multi-state criminal history checks
- Employment verification for previous positions
- Reference checks with former employers
- Drug screening (initial and random testing)
- Ongoing background monitoring for current guards
Ask about their disqualification criteria. What offenses prevent someone from being hired? Violent crimes, theft, fraud, and dishonesty should be automatic disqualifiers.
5. Clarify Scope of Services and Responsibilities
Vague contracts lead to disputes. The contract should explicitly define:
- Specific duties guards will perform (patrol routes, access control, incident response)
- Coverage hours and days (24/7, business hours, weekends)
- Number of guards and their exact post locations
- Response procedures for various scenarios
- What guards can and cannot do legally
If the contract uses generic language like “provide security services,” demand specifics. You’re paying for defined protection, not vague promises.
6. Understand the Complete Pricing Structure
Security Guard Company in Los Angeles and security rates typically range from $20-45/hour for standard services, with armed security commanding premium rates. But the hourly rate is just the starting point. Clarify:
- Base hourly rates for different guard types (armed vs. unarmed)
- Overtime and holiday premium rates
- Minimum billing increments (4-hour minimums are common)
- Administrative fees or service charges
- Uniform, equipment, and technology fees
- Emergency call-out charges
Pro tip: Get everything in writing. Verbal promises about “no hidden fees” mean nothing if they’re not in the contract.
7. Review Service Level Agreements (SLAs)
An SLA defines performance expectations and what happens when they’re not met. Your contract should include:
- Guaranteed response times for emergencies
- Guard replacement timeframes if someone no-show
- Report delivery schedules and formats
- Management accessibility (24/7 supervisor contact)
- Performance metrics and how they’re measured
- Remedies if service levels aren’t maintained
Without clear SLAs, you have no recourse when performance fails to meet expectations.
8. Scrutinize Termination and Renewal Clauses
Read the fine print on how and when you can exit the contract. Key questions:
- What’s the initial contract term? (6 months, 1 year, longer?)
- How much notice is required to terminate or not renew?
- Are there early termination fees? If so, how much?
- Does the contract auto-renew? What’s the notification window?
- Can you terminate for poor performance without penalty?
Be wary of contracts requiring 90+ days’ notice or imposing punitive termination fees. Legitimate companies offer reasonable exit terms because they’re confident in their service quality.
9. Check for Subcontractor Provisions
SomeSecurity Guard Company in Los Angeles subcontract guards from other agencies, and that’s not always disclosed upfront. Your contract should clearly state:
- Whether subcontractors will be used
- If so, under what circumstances
- Whether subcontracted guards meet the same standards
- Who maintains liability when subcontractors are involved
If you’re hiring Company A, you expect Company A’s vetted guards, not random subcontractors you’ve never evaluated.
10. Verify Technology and Reporting Systems
In 2026, modern Security Guard Company in Los Angeles should offer digital reporting capabilities. Confirm they provide:
- Real-time incident reporting via mobile apps
- GPS tracking and tour verification systems
- Access to reports through web portals
- Photo and video documentation capabilities
- Integration with your existing security systems
Companies still using handwritten logs are behind the times and probably cutting corners elsewhere, too.
11. Establish Communication and Escalation Protocols
When problems arise at 3 AM, who do you call? The contract should specify:
- Primary and backup emergency contacts (names and phone numbers)
- Escalation procedures for different incident types
- Expected response times for various situations
- Regular meeting schedules for performance reviews
- How guard concerns or requests are handled
Test their responsiveness before signing. If they’re slow to respond during the sales process, it won’t improve after they have your signature.
12. Review Client References and Track Record
Don’t skip this final verification step. Request and actually call at least three current clients with similar needs to yours. Ask specific questions:
- “How quickly do they respond to incidents and concerns?”
- “Have you experienced guard no-shows? How were they handled?”
- “What’s the quality and professionalism of their guards?”
- “Have you had any billing disputes or surprise charges?”
- “Would you renew their contract? Why or why not?”
Also check Google reviews, BBB ratings, and BSIS complaint history. Patterns tell you more than individual incidents.
Red Flags That Should Stop You from Signing
Even if a company checks some boxes, certain warning signs should make you pause:
- Pressure to sign immediately: “This deal expires today” is a sales tactic, not a legitimate reason to rush
- Reluctance to provide documentation: Licenses, insurance certificates, and references should be readily available
- Vague or generic proposals: Quality companies conduct site assessments and create customized plans
- Prices significantly below market rates: They’re cutting corners somewhere, usually training, wages, or vetting
- Poor communication during sales: If they’re unresponsive now, imagine how they’ll be later
- Unwillingness to negotiate terms: Everything in a contract should be negotiable within reason
Final Thoughts: Protect Yourself Before You Protect Your Business
Choosing a security company in Los Angeles takes more than comparing prices. With thousands of guards and agencies in the market, the right partner can strengthen your safety; the wrong one can expose you to liability and poor service. Use this 12-point checklist, verify every detail, and don’t sign until all questions are answered. A security contract is a partnership, so choose the company that proves reliability, transparency, and professionalism before you commit.
FAQs
2) What insurance should a security company have?
At minimum: $1–2M general liability, workers’ comp, auto liability (if patrols), and professional liability. Ask for COIs from the insurer and get listed as an additional insured.
1) How do I verify a security company’s license?
Check the BSIS online license lookup. Make sure the PPO license is active, matches the company name, and has no recent violations.
3) How do I avoid hidden fees?
Get all rates in writing: base hourly rates, overtime/holiday charges, equipment fees, admin fees, and minimum billing hours, no verbal promises, contract only.
4) Is subcontracting a red flag?
Not if disclosed. Ensure subcontractors meet the same training, licensing, and insurance standards, and that the primary company takes full responsibility.
5) What do I do if guards underperform?
Follow the SLA: contact the supervisor, request an immediate replacement, document everything, and escalate the issue through the contract’s performance or termination terms.