7 Tips for a Contract Security Agreement

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Running a company is not easy. As a business owner, you are constantly being bombarded with questions about inventory, product capabilities, the budget, employee satisfaction, and more. You are faced with many difficult issues and decisions, but keeping your company and workers safe should not be one of them. 

Having a security agreement is key to keeping your company’s assets safe for years to come. Before you jump into any long-term contract, though, you need to define your expectations. In this guide, we will go into detail about how you need to navigate this contractual process.

security guard services

Who Might Need A Contract Security Agreement?

Security for any business is immensely important. You want to feel safe whether you are protecting staff, assets, critical information, or something else entirely. Consider the following types of situations where a contract security agreement may be needed:

  • Opening a Business
    Unfortunately, opening a business can get you more attention than you desire. New companies are prime targets for illegal activity, such as theft. That is why setting up a security agreement with a licensed security agency can help ensure your business stays safe and offsets the potential for loss.

  • Events or Festivals
    It is common knowledge that large festivals, sporting events, and gatherings require security officers or law enforcement. These guards not only keep the public safe but also remove problematic situations before they boil over. Event organizers who expect large crowds need to consider a security contract agreement to acquire the personnel and help they need.

  • Retail Outlets, Banks, and Convenience Stores
    These businesses are ideal locations for crime because they have goods and funds that are readily available, making hiring security professionals important for such companies. Security teams can protect them and their employees while safeguarding confidential information, contract documents, and other assets.

The security industry provides many services to enhance a company’s safety and ensure daily operations and special events run without issues. The key to making this work is including the right terms in the security agreement. 

7 Elements of a Contract Security Agreement

Before you jump into any security agreement, you need to define your expectations. The following list will help you when drafting yours to protect you and your business. 

1. Clearly define the length of the contract security agreement

Contract Security Agreement

Before you get into any agreement, you need to define how long you need the security services. Why? Because the duration of this contract will have a ripple effect on your services. You must define the agreement’s duration, including the effective start and end dates. This will ensure your company remains adequately staffed and equipped to protect your business. 

2. Ensure the contractor has proper insurance coverage

You need to verify that your chosen security professionals both have a valid policy and are adequately insured. An insurer will protect your company in the event of issues or mishaps, but you cannot rely on good faith that a security firm has valid coverage. Instead, you need to list the types of coverage required in your services agreement — including for general liability issues, employers’ liability, and workers’ compensation. The contract should indicate that motor vehicle insurance is required if cars are going to be used, for example. Having your company’s insurance agent review the contract can verify that the agreement and coverage  is adequate. 

3. Ensure the contractor is licensed

Security professionals are required to meet licensing regulations, and each state has its own applicable laws and statutory regulations. That is why your contract needs to ensure that each resource maintains state licensure. Your business can be held liable if an incident occurs if you do not have licensed security professionals, so you’ll want this squared away up front. 

4. Ensure that training standards are met


When creating your security guard services contract agreement, you need to clearly define your training expectations. Include professional certifications, the number of courses you require per year, and the type of coursework you want to be completed. Continuous training is critical in the security industry, and ensuring your security is trained to handle various situations is the best way to keep your company safe. 

5. Verify the type of security guards you need

Your business or event may require unarmed security or armed security guards, depending on the situation. You need to define this in your contract agreement — especially when hiring armed professionals — because you want to guarantee compliance with local and state laws.

6. Verify the chain of command and who is in charge

security guard

There are a lot of moving parts when you hire a security team. The contract will be the best place to define everyone’s roles, the scope of work, and how the professionals will interact with your company’s management. Failing to define intercompany communications can lead to a lot of breakdowns and potential issues. Specifying this chain of command in your agreement can head off these problems before they start. 

7. Verify everyone’s duties and responsibilities 

This is a standard section in contracts, but it is also one of the most important parts of the entire agreement. Here you will indicate labor categories with their correlating responsibilities and duties. Having this section in your security agreement ensures the performance of the services you want and that your security professionals meet your expectations. It may also be beneficial to insert Defense and Indemnification or “hold harmless” language in this section. This can help secure your business from legal actions resulting from security contractors’ negligent acts.

Benefits of Working with a Security Company

security guard service contract agreement

A security agreement is a significant investment, but worth the costs when you consider the expenses you may have to endure from commercial crime and theft. Keeping your company and staff safe is the number one goal for any business, but many companies are still unsure of what they need to do or who to call to get it done. 

That is why you need to contact SMART Security Pros today. Working with our team of security experts means you get help figuring out your concerns, discussing your needs, and coming up with the best plan of action. Better yet, your first meeting with us will include a site visit and designing a plan to accommodate these issues. Give us a call to set up your appointment today!

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