Key Takeaways:

  • Security company contracts protect both client and contractor by defining terms, responsibilities, and limitations.
  • Important clauses include liability coverage, indemnification, and modification stipulations to minimize risks for both parties.
  • A thorough review of the contractor's insurance, licensing, and terms regarding firearms and equipment is crucial.
  • Clear descriptions of services, payment terms, and termination clauses are essential in avoiding future conflicts.
  • Consider adding specific performance requirements, emergency response protocols, and incident reporting obligations.
  • UpCounsel’s legal marketplace connects you with experienced attorneys who can assist in drafting or reviewing security contracts.

Security Contracts

Security company contracts samples refer to the standard contractual agreements one might enter into when hiring a security guard for their enterprise. Such contracts as these can be for one-time jobs or for ongoing work, but either way, it is paramount that such agreements are made in writing. Ideally, you will want a Security Guard Services Agreement in writing, as it will be of great value should litigation, misunderstandings, or other disagreements arise.

Security Company Contract Complexities

Before contracting a security guard for your company, there are a number of actions you should take to reduce the risk of your business to legal exposure. These actions include:

  1. Review the agency’s license. Any legitimate contract guard agency should be more than happy to provide a copy of their business license. Once it’s provided, contact your state agency that deals with licenses to validate it. You can also get a Dun & Bradstreet report to ensure the company’s solvency.
  2. Get a Certificate of Liability Insurance. This is so you can lay out your company’s requirements for contractors insofar as employers’ liability, excess liability, general liability, and workers’ compensation is concerned. Such requirements should be non-negotiable, and ideally allow you to be included on the contractor’s insurance policy so that you can file a claim against it, if necessary.
  3. Insert a Defense and Indemnification Clause. Sometimes referred to as “hold harmless” language, such a clause is meant to secure your business from legal actions stemming from negligence on the part of the guard contractor. If such legal action does occur, it will be the guard company that is liable, not you.

Additional Considerations for Security Company Contracts

When creating security company contracts, additional elements can provide clarity and protection for both the hiring business and the security contractor. These provisions may include:

  • Performance Standards: Specify the expected performance standards, including response times, patrol frequencies, and reporting requirements, to ensure service quality. These standards help both parties understand the metrics by which service will be evaluated.
  • Emergency Response: Define clear protocols for emergency situations, such as security breaches or safety hazards. Detailing these procedures helps ensure a coordinated response and can minimize liability for the client by demonstrating preparedness.
  • Incident Reporting: The contract should outline a formal process for incident reporting, specifying which types of incidents require immediate notification, the timeframe for reporting, and the method of communication. This can prevent misunderstandings and ensure critical issues are promptly addressed.
  • Training and Qualifications: Outline minimum training and certification requirements for guards to ensure they are qualified to handle potential risks. This may include certifications in first aid, de-escalation tactics, and the appropriate use of force, particularly if firearms are involved.

Important Security Agreement Provisions

Any properly drawn security contract should have the following provisions in it:

  1. Parties to the Agreement. In this provision, the names of the parties engaged in the contract are set forth.
  2. Services. Here is set out what kind of security service will be given, such as patrol, executive protection, or building security.
  3. Time of Completion. This indicates the time in which the security services will take place and if those services will be for one time only or on an ongoing basis.
  4. Equipment. This will indicate what equipment will be provided by both parties.
  5. Firearms. This will indicate if firearms are to be included as part of security, and if so, what kinds.
  6. Payment and Other Expenses. This will specify what the payment for services, reimbursement policy, and other expenses will be.

Monitoring and Compliance Provisions

Security company contracts can benefit from clauses that promote compliance and allow for monitoring of services. Examples include:

  • Regular Audits: A clause enabling the client to conduct periodic audits of security operations, either on-site or through document reviews. Audits help ensure that the contractor meets agreed standards consistently.
  • Compliance with Local Regulations: Specify that the contractor must comply with all applicable local, state, and federal laws. This includes adherence to labor laws, privacy laws, and any specific regulations concerning security services.
  • Communication Channels: Establish clear points of contact and preferred communication channels to handle day-to-day operational issues. Efficient communication helps maintain service consistency and promptly resolves any emerging issues.

Sample Security Contract

There are many possible ways a security contract may be drawn up, and although specific terms and conditions may vary a great deal, contracts will not usually vary too much in basic outline from the sample below:

This Security Contract sets out the conditions and terms governing the contractual agreement between [security contractor], its place of business at [security contractor’s address], and [client], who does agree to honor this Security Contract.

Whereas [security contractor] provides security services and [client] holds a property at [address] and desires [security contractor’s] services in accordance with the conditions and terms stated herein, in consideration of mutual promises and covenants secured by the parties stated in this Security Contract, [security contractor] and [client] agree and covenant as follows:

  1. Security Services. [Security contractor] will perform all security services at [client’s address] as stated in the attached Exhibit A.
  2. Payment. [Security contractor] will be paid by [client] [amount] for [time frame] for the security services as stated in attached Exhibit A. Payment will be made by [time frame].
  3. Term and Termination. This Security Contract’s term will last from [date of start] to [date of finish]. [Client] can terminate this Security Contract for any cause within [number] days’ written notice to [security contractor]. [Security contractor] can terminate this Security Contract immediately for any cause with written notice to [client].
  4. Liability Insurance Disclaimer. [Client] acknowledges and agrees that [security contractor] does not have a policy pertaining to and will not insure [client’s address] for any damage including vandalism caused by any third party. [Client] acknowledges and agrees that advisement has been made that it seek out independently such a policy from [security contractor].
  5. Indemnification. [Client] agrees to protect, defend, and indemnify [security contractor] from any costs and lawsuits of any kind relating to [client’s] use of [security contractor’s] security services including legal fees relating to infringement of any intellectual rights of any third party.
  6. No Modification Unless in Writing. There will be no valid modification of this Security Contract save by writing and done so in agreement from both [security contractor] and [client].
  7. Applicable Law. This Security Contract and any interpretation of the terms stated herein will be construed in accordance to and governed by the laws of the State of [state] and subject to exclusive jurisdiction of state and federal courts in [county], [state].

In witness whereof, [security contractor] and [client] have executed this Security Contract, both [security contractor] and [client] by their duly authorized officer, on the day of the year stated below.

The above contract is a sample for educational purposes only, and legal counsel should be consulted before any contract is signed between parties.

Frequently Asked Questions

  1. What should be included in a security company contract?
    Essential elements include liability clauses, indemnification, detailed service descriptions, payment terms, termination clauses, and emergency response protocols.
  2. Why is liability insurance important in a security contract?
    Liability insurance protects both parties by covering potential damages or claims that might arise from security services, reducing the financial risk for the client.
  3. Can a security company contract be modified after signing?
    Modifications are allowed only if a written agreement is made between both parties, ensuring that all changes are documented and mutually agreed upon.
  4. What qualifications should security guards have in a contract?
    Contracts can specify qualifications like certifications in first aid, use of force, and other skills relevant to the security tasks, ensuring guards meet safety standards.
  5. How do incident reporting procedures help in a security contract?
    They ensure timely communication about security breaches or other incidents, allowing for swift action and reducing the likelihood of further issues.

If you need further help understanding security company contracts samples, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.