The short answer: confirm an active company license with your state board, verify individual guard cards, get a Certificate of Insurance that names you as additional insured, ask direct questions about background screening, supervision, and subcontracting, and check references before signing anything.
The longer answer is below. Use the checklist at the end to keep track.
1. Verify the company's state license
Every security guard company must hold a state-issued license, often called a Private Patrol Operator (PPO) license or Private Security Company license. This is not optional. Operating without one is a criminal violation in most states, and hiring an unlicensed firm leaves you exposed if a guard causes harm on your property.
How to check: Every state regulatory body publishes a free online license-lookup tool. Search "[your state] security guard company license lookup" to find the correct portal. Common agencies include:
- •California - Bureau of Security and Investigative Services (BSIS) at search.dca.ca.gov; look up "Private Patrol Operator"
- •Texas - Department of Public Safety Private Security Program at tcole.texas.gov
- •Florida - Department of Agriculture and Consumer Services, licensing portal
- •New York - Department of State, Division of Licensing Services
- •Washington - Department of Licensing, Security Guard Company license portal
For a full directory of all 50 states, the Belfry Software security guard license lookup guide links directly to each state's verification tool.
When you find the company in the database, confirm:
- •License status is Active (not expired, suspended, or revoked)
- •The legal business name on the license matches the name on the contract you're about to sign
- •There are no open disciplinary actions or enforcement records against the licensee
If the company cannot provide a license number or does not appear in your state's database, stop there.
2. Verify individual guard licenses, including firearms permits
A company license covers the business entity. It says nothing about whether each guard assigned to your site is individually licensed. In most states, each guard must hold a personal registration, commonly called a Guard Card, before they can legally work a post.
What to verify for unarmed guards:
- •Current, active guard registration in the state where your site is located
- •No disciplinary actions on the individual's record
What to verify for armed guards: In addition to a standard guard card, armed guards must hold a separate firearms permit or armed security officer endorsement issued by the same state board. Confirm:
- •The armed guard endorsement is active and current
- •The permit covers the specific firearm type the guard will carry (handgun vs. long gun)
- •The company carries the additional insurance coverage that armed deployments require
Ask the security company directly: "Can you provide the guard card numbers for the personnel assigned to my site?" A professional company will share this without hesitation. Resistance is a red flag.
3. Confirm the Certificate of Insurance (COI)
This is the step most businesses skip, and the one that will cost you most if something goes wrong. A licensed security company is required by law to maintain insurance, but the specifics matter.
Coverages to require:
| Coverage type | Minimum to require | Why it matters |
|---|---|---|
| Commercial General Liability | $1,000,000 per occurrence / $2,000,000 aggregate | Covers bodily injury or property damage caused by a guard on your premises |
| Workers' Compensation | Statutory limits for the state | Covers guards injured on your site; without it, you may face claims |
| Professional Liability (E&O) | $1,000,000 | Covers failure to perform services as agreed |
| Commercial Auto | $1,000,000 combined single limit | Required if guards drive patrol vehicles on or around your site |
How to verify a COI:
- •Request the certificate directly from the security company's insurance agent or broker, not from the company itself. Certificates issued by the insured party can be altered.
- •Check that the named insured on the COI exactly matches the licensed business name.
- •Confirm policy effective and expiration dates. An expired policy is no policy at all.
- •Verify that your business is listed as an Additional Insured on the general liability policy. This means the policy covers claims made against you arising from the guard's actions, not just claims made against the security company.
- •Contact the insurance carrier directly to confirm the policy is active if you have any doubts.
A company that is slow to provide a COI, offers low limits, or refuses to add you as additional insured should not be on your shortlist.
4. Ask about guard background screening and vetting
Licensing confirms a guard meets a legal minimum threshold. It says nothing about how rigorously the company hires, trains, and retains its people. Ask these questions directly:
- •What does your background check process include? Look for criminal history checks (federal + county level), sex offender registry, and employment verification. Fingerprint-based checks (Live Scan in California) are the most thorough option.
- •Do you check references for every guard hire? Many companies skip this for frontline staff.
- •What disqualifies a candidate? A serious company has written standards, not just "depends on the case."
- •How long is your training program? State minimums vary from 8 to 40+ hours. Ask what the company requires beyond the legal minimum.
- •What is your guard retention rate? High turnover means unfamiliar faces at your post and is often a sign of poor management.
5. Evaluate supervision and accountability
Who is watching the guard watching your property? Poor supervision is how no-shows, sleeping on duty, and unreported incidents happen.
Questions to ask:
- •Do guards carry GPS-enabled devices? Real-time location tracking creates accountability and provides proof that rounds were completed.
- •How are patrol checkpoints documented? Look for NFC-tap or QR scan systems at named checkpoints with timestamped logs you can access.
- •What is your no-show protocol? If a guard calls out at midnight, how quickly can the company fill the post? What is the escalation path?
- •How are incidents reported? You should receive a written incident report for every event, no matter how minor, within 24 hours.
- •Who is my point of contact if there is a problem? There should be a named supervisor or account manager, not a general dispatch line.
6. Check references
Ask for at least two references from clients with a similar site type, such as retail, office, construction, or events, and similar hours (especially if you need overnight coverage). Call them and ask:
- •Did guards show up on time for every shift?
- •Were incidents reported promptly and accurately?
- •How did the company respond when something went wrong?
- •Would you use them again?
A company that cannot provide references or offers only vague testimonials has something to hide.
7. Ask about subcontracting
Some security companies win your contract and then quietly subcontract the work to a smaller agency you have never vetted. The subcontractor's guards may not meet the standards you were promised, insurance may not transfer cleanly, and your point of contact changes mid-stream.
Ask directly: "Will all guards on my account be your direct employees, or do you use subcontractors?" If they use subcontractors, get that firm's license and insurance documentation as well.
8. Expect transparent pricing
Below-market pricing is a warning sign, not a bargain. Licensed, insured security with properly background-checked guards costs what it costs. Nationally, unarmed guards average around $29-$35 per hour depending on the market; armed guards run $42-$55 per hour.
If a company quotes dramatically below these ranges, ask how. Common explanations include guards paid below minimum wage, workers misclassified as independent contractors (avoiding workers' comp), or unlicensed operation.
Pricing should be itemized, including hourly rate, any vehicle or equipment fees, overtime rules, and cancellation terms, before you sign. See our security guard hiring guide for a deeper breakdown of what to expect in a contract.
Vetting checklist
Use this checklist before signing with any security provider.
Licensing
- • Company license is active in your state, verified directly with the state board
- • License name matches the contracting entity exactly
- • No open disciplinary actions or enforcement records
Individual guard credentials
- • Company confirms all assigned guards hold active guard cards
- • Armed guards (if applicable) hold a valid firearms permit for your state
- • Company will provide guard card numbers upon request
Insurance (COI)
- • Certificate of Insurance received directly from the insurer or broker
- • General liability coverage: $1M per occurrence minimum
- • Workers' compensation coverage: statutory limits
- • Your business is listed as Additional Insured on the GL policy
- • All policies show current, non-expired effective dates
Screening and training
- • Criminal background check process described in writing
- • Fingerprint-based (Live Scan) or equivalent check confirmed
- • Training hours exceed state minimum
- • Written disqualification standards exist
Supervision and accountability
- • GPS or checkpoint-based patrol verification in place
- • No-show fill protocol described with a response time commitment
- • Written incident reports provided within 24 hours
- • Named account manager or supervisor assigned
Due diligence
- • Two references contacted and positive
- • Subcontracting policy confirmed in writing
- • Pricing itemized and within market range
- • Contract reviewed for auto-renewal and cancellation terms (see contract red flags guide)
How Calvis handles this for you
Calvis is a marketplace that connects businesses directly with pre-vetted, licensed security agencies. Every agency on the platform has been verified for an active state company license, general liability and workers' compensation insurance on file, and guard cards continuously verified against state licensing databases in real time, not just at onboarding.
When you hire through Calvis, the vetting work is already done. You can compare agencies, see transparent hourly rates, and book without a long-term contract.
Looking for agencies in your area? See our security guard companies near me guide for what to expect by market.