G.M.B. Security

Why Licensing and Insurance Matter When Hiring a Security Company

Hiring a security guard company is an important decision—one that directly affects the safety of your people and property. But not all security companies are created equal. Before signing a contract, it’s vital to ask: Are they licensed? Are they insured? If the answer to either question is no, it’s a major red flag.

In this blog, we’ll explain why licensing and insurance are non-negotiable when hiring a security company, and how choosing the right partner—like American Alliance Security—protects your business from risk.

Licensing and Insurance

What Does It Mean for a Security Company to Be Licensed?

State Regulatory Compliance

A licensed security company has met all state-mandated requirements, including employee background checks, training certifications, and operational standards. In California, the Bureau of Security and Investigative Services (BSIS) oversees licensing for private patrol operators.

Trained and Vetted Personnel

Only a licensed company can hire BSIS-certified guards. This means the security staff assigned to your site has passed state exams, completed the required training, and undergone fingerprinting and background checks.

Legal Protection for Clients

Hiring an unlicensed company could open your business up to liability. If something goes wrong, you could be held responsible—not the contractor.

Why Insurance Coverage Is Equally Critical

Liability Protection

Things can go wrong, even with trained professionals. Whether it’s property damage, personal injury, or wrongful detention, general liability insurance ensures the security company—not your business—handles the costs.

Workers’ Compensation

If a guard is injured on your property and the company doesn’t carry workers’ comp insurance, you could be held responsible. Reputable companies always carry workers’ comp for their employees.

Auto and Equipment Coverage

If the company uses patrol vehicles or surveillance equipment, proper insurance covers accidents or malfunctions. Without it, you may be left with the consequences.

f you’re moving product or large sums of cash, our security team can provide escort services and secure loading/unloading oversight.

Risks of Hiring an Unlicensed or Uninsured Security Company

    • Legal Liability: You could be sued for negligence

    • Financial Exposure: You may pay for damages out of pocket

    • Unqualified Personnel: Lack of proper training, screening, or experience

    • Non-Compliance: Violations of city or state regulations

How American Alliance Patrol Protects You

At American Alliance Security, we maintain all necessary California state licenses and carry comprehensive insurance coverage to protect our clients, our team, and the public.

Fully Licensed by the BSIS

We meet and exceed all training, legal, and operational requirements set by the state.

Liability Coverage

Our insurance plan covers incidents, accidents, and claims to shield you from unexpected costs.

Professionally Trained Guards

Our team includes both armed and unarmed guards with experience in retail, construction, residential, commercial, and cannabis security.

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What to Ask Before Hiring a Security Company

Before signing any agreement, make sure to ask:

    • Is your company licensed with the BSIS?

    • Do you carry general liability and workers’ comp insurance?

    • Can you provide proof of coverage and certifications?

    • Are your guards trained and background-checked?

If they hesitate to answer or provide documentation—walk away.

Schedule Your Free Security Consultation

Don’t wait until disaster strikes. Let us help you stay compliant and protected.

Your Trusted Security Partner

Protect Yourself—Hire a Company You Can Trust

Hiring the cheapest security service may save you money short term, but without proper licensing and insurance, you’re exposed to major risks. With American Alliance Patrol, you’re hiring a security partner who values professionalism, compliance, and your peace of mind.

FAQs About Licensing and Insurance

How can I verify a security company’s license in California?

You can check the company’s license status on the California BSIS License Lookup.

Yes, reputable security companies carry liability insurance and workers’ compensation to protect clients and employees.

Without insurance, you may be held liable for any injuries or damages caused by their guards while on your property.

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Are fire watch services legally required?

Yes. Most cities and counties require fire watch when systems are down or hazards are high. Your fire marshal may issue a notice of violation if fire watch is not in place.

Unless they are specifically trained and authorized, it’s recommended—and often required—to hire licensed professionals.

At American Alliance Security, we offer same-day fire watch services.

Costs vary by location, size of the property, and length of coverage. Contact us for a free, no-obligation quote.

Are fire watch services legally required?

Yes. Most cities and counties require fire watch when systems are down or hazards are high. Your fire marshal may issue a notice of violation if fire watch is not in place.

Unless they are specifically trained and authorized, it’s recommended—and often required—to hire licensed professionals.

At American Alliance Security, we offer same-day fire watch services.

Costs vary by location, size of the property, and length of coverage. Contact us for a free, no-obligation quote.

Are fire watch services legally required?

Yes. Most cities and counties require fire watch when systems are down or hazards are high. Your fire marshal may issue a notice of violation if fire watch is not in place.

Unless they are specifically trained and authorized, it’s recommended—and often required—to hire licensed professionals.

At American Alliance Security, we offer same-day fire watch services.

Costs vary by location, size of the property, and length of coverage. Contact us for a free, no-obligation quote.