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A security guard contract regulates the interaction and association between security guards and their customers to ensure their assets' safety and security. It could be a tool to resolve disputes between a security guard company and an individual security guard. If something goes wrong, your security guard service contract must be properly drafted for it to be upheld. Typically, a contract for security guard services has a set price. As a result, the price is decided upon before the parties make any agreements.

Essentials to Be Included in a Security Guard Contract

The terms that need to be mentioned when creating a security guard contract are as follows:

  • Indemnity Clause: An indemnity clause commits the parties to shielding one another from specific losses. Due to the actions of specific individuals or organizations, these damages may include personal injury or property loss. In your situation, it would be your client, your business, or the guards. The problem with indemnities is that they may hold you accountable for losses for which you were not actually at fault. If you must sign a contract requiring indemnity, seek limited indemnity, which only binds you to the direct actions of your staff and excludes any liability for the active or careless actions of your client or third parties. Broad indemnity shields your client from all liability, including deliberate acts by your employees, and intermediate indemnification holds you accountable if a lawsuit is filed against the client because of your negligence or their own negligence.
  • Added Protection: Additional insured status, which is frequently found in indemnity agreements, safeguards your client if the indemnity clause is deemed unenforceable. They are also available in narrow, medium, and wide applications, such as indemnity. If your additional insured provision is more expensive than your insurance policy, you will also be dealing with self-insurance.
  • Revocation of Subrogation: If there is a waiver of subrogation, the insurer is free to sue a third party. If one of your workers is hurt while doing work at your client's location, this might be applicable. Your client may, by waiving subrogation rights, transfer liability back to you if your employee decides to sue the client. Try to avoid subrogation clauses as much as you can, and make sure any clause you accept is covered by your insurance. In this case, too, self-insurance covers any disparity.
  • Contractors' and Owners' Protective Liability: Although they are less common than they once were, you might still come across them. These are insurance policies that you buy on behalf of your clients in their names. If the risk is acceptable to you, you can substitute indemnity or additional insured provisions if needed.

Other Essential Conditions of a Security Guard Contract

In a contract, there might be other terms that, if you do not understand them or use them incorrectly, could unintentionally lead to issues. Some of those terms include:

  • Agency Theory: The claim that you and your staff work as independent contractors rather than as your client's agents. This is supposed to shield you from liability for other things, including acts and omissions. Contract language may require you to defend and indemnify the client if one of your employees sues the client after receiving worker's compensation from your carrier. This could cause issues if the client is an overseas employee at your site and someone is hurt.
  • Duties and Obligations: Always include a statement saying that your services do not constitute a security analysis unless otherwise agreed to. This way, you will prevent being sued for negligent security. However, be careful: utilizing a free security audit to attract customers may connote an inquiry, diluting any duties.
  • Prerequisites: All parties must agree on the duration of the agreement and its cancellation policy. Specify how much time in advance should be given.
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Tips for Navigating a Security Guard Contract

When writing a contract for security personnel, please consider the following:

  • Decide on How Long You Want the Security Service. Before you draft any contracts, you must first determine the period within which you want to have it. You should state the length of such agreement including where it commences and ends as well. This will ensure that your company has enough personnel and tools to safeguard its activities.
  • Verify that the Contractor is Adequately Insured. Make sure the security experts you have selected are suitably insured and have a current policy. In the event of problems or accidents, an insurer will safeguard your business; however, you cannot depend on a security company's good faith to provide valid coverage. Rather, you must include a list of the coverage categories that are necessary in your services agreement, such as general liability, employers' liability, and workers' compensation. For example, the contract should specify that the use of cars requires motor vehicle insurance. It is possible to confirm that the terms and coverage are sufficient by having the insurance agent for your company evaluate the contract.
  • Know the Contractor's License Status. Security professionals must follow state-specific applicable laws and statutory regulations to comply with licensing requirements. Your contract must, therefore, guarantee that every resource keeps its state license. If you do not have certified security personnel on staff, your company may be held accountable in the event of an incident, so you should take care of this right away.
  • Check Training Requirements. Specify your training requirements specifically when preparing the contract agreement for your security guard services. Add the type of coursework you would like, the number of courses to be taken per year, and your professional certifications. Continuous training is important in the security industry, and the best way to keep your business safe is to make sure that your security personnel are prepared to handle different types of situations.
  • Classify Security Personnel. Depending on circumstances, armed or unarmed security guards may be required for your company or event. Specifically, address this in your contract agreement when hiring armed professionals to comply with local and state laws.
  • State the Line of Command. When you employ a security team, there are numerous moving components. The contract is the ideal tool for outlining responsibilities, the extent of the work, and how the experts will communicate with your business's management. If intercompany communications are not clearly defined, there may be several malfunctions and possible problems. By laying out this hierarchy in your contract, you can prevent these issues from arising in the first place.
  • Provide 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.

Key Terms for Security Guard Contracts

  • Agency Theory: Agency theory provides that you and your staff work as independent contractors rather than as your client's agents.
  • Collateral: A valuable asset pledged by a borrower as security for a loan is known as collateral in the financial world.
  • Fungible Asset: The ability of a good or asset to be substituted for other individual goods or assets of the same kind is known as fungibility.

Final Thoughts on Security Guard Contracts

The secret to safeguarding your business's assets for many years is having a security agreement. However, you must clearly state your expectations before entering into any long-term agreement. The best option is to have an attorney from your in-house legal department assigned to support your department. Then, as contracts need to be reviewed, that attorney can ensure that the proper terms are structured into the contract—and you won’t get stuck waiting for days or weeks for someone to return your calls.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, Click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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