Hidden Risks of Hiring Undertrained or Uninsured Security Guard Companies in San Diego

Written by Rafi Kalliny

Why Cutting Corners on Security is Risky

In San Diego’s competitive business environment, companies across industries, including retail, biotech, hospitality, and healthcare, rely on security guard services to protect their people, property, and reputation. However, not all security guard companies in San Diego operate at the same standard. Many businesses assume that the security guard company they have hired has certified, properly trained, and insured security guards.

Unfortunately, that is not always the case.

When you hire a security company that cuts corners, you take on significant risk without realizing it. Undertrained or uncertified guards can mishandle emergencies, uninsured companies can leave you exposed to lawsuits, and unlicensed providers may even operate illegally.

As a business owner, it is your responsibility to verify that your security partner meets California’s strict requirements.

The Legal Risk of Hiring the Wrong Security Guard Company

Here is where business owners sometimes get tripped up. Hiring a security guard company does not automatically shield you from liability. If that security guard company is unlicensed, uninsured, or undertrained, it can drag you into legal and financial trouble.

Liability for Unlicensed Guards

In California, it is illegal to hire or contract with a security guard who is not licensed by the Bureau of Security and Investigative Services (BSIS). If you hire a security guard company that supplies unlicensed personnel, your business can be cited for using unregistered guards. Both the individual guard and the employer can face fines up to $5,000 for non-compliance.

Vicarious Liability for Guard Misconduct

When a security guard acts improperly, responsibility does not always end with the security company. If an untrained or uncertified guard uses excessive force, detains someone unlawfully, or mishandles a confrontation, your business could be held vicariously liable. That means lawsuits, settlements, or judgments may fall on you as the client.

Premises Liability Cases

Premises liability lawsuits are one of the most common outcomes when undertrained security personnel are involved. If a guard injures a visitor, customer, or employee on your property, the injured party can file a claim against your business. Even if the guard was technically employed by the security vendor, plaintiffs often pursue the property owner or business operator for damages.

Financial Exposure Without Insurance

If your security company does not carry adequate insurance, you could be left holding the bill. Without general liability, workers’ compensation, and errors and omissions coverage, there is no safety net if a guard damages property, injures someone, or is injured on the job. That financial exposure shifts directly to you.

Reputational Damage

Legal and financial risks are serious, but reputational harm can be just as costly. If customers, employees, or the public discover that your business used uncertified or uninsured guards, it can erode trust and confidence. In high-stakes industries such as healthcare, biotech, or hospitality, reputational damage can mean lost contracts, negative press, and declining customer loyalty.

Steps to Take to Ensure You Are Hiring the Right Security Guard Company

After understanding the risks of hiring undertrained or uninsured guards, the next step is knowing how to protect your business. Fortunately, California provides clear requirements that every legitimate security provider must meet. By following these steps, you can verify that your security guard company is properly licensed, insured, and committed to training, giving you confidence that your business is in safe hands.

Step 1: Verify the Company’s License

Every security provider in California must hold a valid Private Patrol Operator (PPO) license issued by BSIS.
You can ask the security guard agency:

• What is your PPO license number?
• Is it current and in good standing?
• Are you licensed to operate in San Diego?

But don’t just rely on them telling you that they have a PPO license. You can confirm a PPO license through the BSIS License Lookup. No PPO license means the company is operating illegally as security guard providers in San Diego.

Step 2: Verify the Security Guards’ Certification

Every guard must hold a valid Guard Card issued by BSIS.
Requirements include:

• DOJ and FBI criminal background checks
• 8 hours of training before being assigned to a post
• 32 hours of additional training within the first six months

Ask your security company for copies of Guard Cards for all guards assigned to your site and confirm them directly through the BSIS website.

Step 3: Get Proof of Insurance

A legitimate company will carry full insurance coverage. At a minimum, you should be able to request proof of:

• General Liability Insurance
• Workers’ Compensation
• Errors and Omissions insurance
• Auto insurance (if patrol vehicles are used)

If a security guard causes harm or is injured on your property and the security guard company lacks coverage, the liability could fall directly on you.

Step 4: Ask About Training Standards

Hiring security guards who hold a Gaurd Card is not enough. Security guards should receive ongoing training in areas such as:

• De-escalation and conflict resolution
• First aid and CPR
• Emergency response protocols
• Report writing and legal documentation

ASAP Advantage: ASAP Security operates its own in-house security academy that delivers both initial training and continuous professional development. This ensures all guards exceed state minimums and stay prepared for evolving security threats.

Step 5: Confirm Background Checks and Screening

All security guards must pass DOJ and FBI checks, but the best security guard companies go further. Ask about:

• Drug testing
• Criminal history reviews
• Fitness-for-duty evaluations (especially for armed guards)
• Past professional conduct and complaint history

A security guard company that cannot explain how it screens guards is not one you should trust with your business.

Additional Safeguards for Hiring a Security Company

Even after you verify licenses, certifications, insurance, training, and background checks, there are still other factors that can protect your business from risk. A security provider’s pricing, contracts, and commitment to ongoing compliance reveal a lot about how seriously they take their responsibilities. Before signing on, take the time to review these additional safeguards.

Beware of Low-Bid Contracts

Cost is often one of the clearest indicators of whether a security company is operating legitimately. In San Diego, the minimum hourly wage for security officers is $17.50. When you factor in payroll taxes, insurance coverage, uniforms, technology such as Daily Activity Reporting (DAR) systems, and supervision, the true minimum cost per hour is closer to $25 or more.

If a company is offering security services below this threshold, it is a major red flag. In most cases, it means the provider is cutting corners by:

• Hiring unlicensed guards without valid Guard Cards
• Employing undocumented workers without proper authorization
• Skipping insurance coverage or supervision requirements

These practices are not only illegal but also put your business at serious risk. Unlicensed or improperly vetted guards can mishandle incidents, create liability issues, and damage your company’s reputation.

The short-term savings of a low-bid contract are quickly outweighed by the long-term financial, legal, and reputational risks.

Read the Contract in Full

Do not skim over the fine print. A strong contract should clearly define:

• Scope of services
• Liability limits
• Reporting and documentation requirements
• Response procedures
• Terms of cancellation

Push back on vague or one-sided terms. If a company resists transparency, consider it a red flag.

Ensure Ongoing Compliance

Compliance is not a one-time event. Review your provider’s credentials at least once a year. Request updated:

• Guard Cards
• PPO license verification
• Insurance renewals
• Training certifications

The Bottom Line: Protect Your Business by Hiring Right

Hiring the wrong security guard company is not just a poor choice for safety; it is a direct threat to your financial security and reputation. Undertrained, uncertified, or uninsured guards expose your business to lawsuits, fines, and preventable incidents.
The solution is simple:

• Ask the right questions
• Verify credentials
• Demand transparency.

If a company cannot provide proof, walk away.

At ASAP Security, we set the highest standard in San Diego security. As a GSA Contract Holder with an in-house training academy, 24/7 human dispatch, geolocation reporting technology, and leadership grounded in military and police service, we provide security you can trust.

Ready to secure your business with certified, insured, and highly trained professionals? Contact ASAP Security today to schedule your consultation.