What is a Contract Security Provider?

A contract security services provider (or a security guard company) is an outside security firm that businesses and individuals hire to manage all aspects of staffing security guards, enforcing policies, and maintaining a secure and safe environment at their facility.

What are some of the task’s security guards are responsible for?

Security guards are licensed by the state in which they operate in. Security guards are not authorized to work for themselves as freelancers in New York, and they must be hired by licensed watch, guard, and patrol agency (contract security firm), or hired by a registered proprietary employer of security guards. 

Security guards typically are stationary at points of entry or exit at a facility. Security guards are also mobile by foot or vehicle. The job of a security guard is to detect, deter, protect, preserve, and report.

What is a contract security provider responsible for?

A contract security provider is responsible for: 

• State licensing
• Screening
• Hiring
• Training
• Purchasing uniforms
• Scheduling
• Supervision
• Payroll taxes
• Unemployment insurance
• Workers compensation insurance
• Cost of security vehicles
• Automotive insurance for security vehicles
• Health benefits
• Resolving personnel issues
• Claims arising out of actions or inactions of its employees. 

What are some of the benefits of using contract security services?

• It is cost-effective over time, and there is less risk!
• As a client, you can still direct and control your security program. 
• If you want a security guard removed from your site, you can do so without having to worry about an unemployment or discrimination claims. 
• The contractor absorbs mostly all risk relating to negligence, errors, omissions, claims of wrongdoing of its guards.
• You pay the contractor one hourly bill, with no additional expenditures (such as uniforms, insurance, and payroll taxes).

What is a Bill Rate?

A bill rate is how much a security contractor charges the client per hour per guard. Bill rates vary based on the scope of work to be performed, and the qualifications needed such as armed or unarmed security staffing. 

Typically, security companies factor the following considerations into their bill rate:

· Screening, hiring, training, and placing security guards at a location

· The cost of uniforms, equipment, and vehicles

· Taxes

· Insurance premiums

· Wage rates

· Profit

Is overtime or holiday pay reflected in a security contract?

Yes. Proposed bill rates will reflect OT and holiday pay. 

Will you save money if you contract a security firm?

If you used a contract security firm, you would not be 100% responsible for the actions or inactions of the contractor’s employees. It is also cost-effective over time to use a contractor as the upfront costs are minimal. Contract security firms already have the insurance, operations capabilities, equipment, uniforms, manpower, and staff to begin providing the services right away in most cases.

If you used your own proprietary ("in-house") security force, you would be 100% responsible for all aspects of hiring and maintaining security guards at your location. This also includes purchasing additional state required insurance policies and absorbing 100% of all claims and settlements that may arise for the actions and inactions of your own guards.