10 Questions to Ask Before Signing a Security Guard Contract

Hiring a security company is easy. Signing the right security guard contract is where most property managers, condo boards and business owners get caught out. The sales conversation covers guards, uniforms and coverage hours. The contract decides what actually happens when a guard doesn’t show up, an incident goes to court, or you want to leave after six months.

Before you sign any security services contract, ask these 10 questions. They’re grouped into three areas: the company, the contract terms, and day-to-day accountability.

Quick answer: the 10 questions

1. Are your guards licensed in our province?
2. What insurance do you carry, and can we see the certificate?
3. How are guards screened and trained for our site?
4. What exactly is in scope?
5. How are rates, overtime and statutory holidays billed?
6. Who carries liability if something goes wrong?
7. What are the term, renewal and termination conditions?
8. How will we know the guards are doing the job?
9. What happens when a guard calls in sick or an emergency hits?
10. Will you use subcontractors, and can we approve guard assignments?

Why the Contract Matters More Than the Sales Pitch

A proposal tells you what a security company intends to do. A security guard service agreement tells you what they are obligated to do. If a promise isn’t written into the agreement, you can’t enforce it. Reading the contract carefully is also the best way to compare providers fairly. It shows how each company handles risk, staffing and accountability, not just how it presents itself.

Questions About the Security Company

1. Are your guards licensed in our province?

Security licensing in Canada is provincial. In Ontario, guards must hold a licence under the Private Security and Investigative Services Act (PSISA). In Alberta, licensing falls under the Security Services and Investigators Act. Ask for the company’s business licence and confirmation that every guard assigned to your site is individually licensed. Then make keeping those licences current a contract obligation.

2. What insurance do you carry, and can we see the certificate?

Ask for a current certificate of insurance showing commercial general liability coverage. Request that your organization be named as an additional insured. In Ontario, also ask for a WSIB clearance certificate. Without one, you could be exposed if the provider hasn’t paid its workplace insurance premiums.

3. How are guards screened and trained for our site?

General training is a baseline. What matters is site-specific preparation: orientation to your post orders, emergency procedures and any hazards. Ask about background checks, first aid and CPR, de-escalation, and specialized training such as WHMIS for industrial sites. If you need armed or unarmed guards, confirm which roles the company can legally staff.

Questions About the Security Guard Contract Terms

4. What exactly is in scope?

The scope of work should name the posts, coverage hours, duties and patrol frequency. It should also say whether you’re getting static guards, mobile patrols or both. Vague wording such as “general security duties” leaves room for disputes. Ask whether written post orders form part of the contract and how changes are approved. If you’re unsure about staffing levels, work out how many security guards you need before you sign.

5. How are rates, overtime and statutory holidays billed?

You don’t need a perfect price; you need a predictable one. Ask how hourly rates are structured and when overtime applies. Ask how statutory holidays and short-notice requests are billed, and whether the contract allows annual rate increases. Unexpected surcharges are one of the most common sources of friction between clients and providers.

6. Who carries liability if something goes wrong?

Look closely at the indemnification and limitation of liability clauses. A fair security contract makes the provider responsible for its own guards’ negligence. It also caps liability at a level that reflects your risk. Have your legal advisor review these sections, especially for high-traffic or high-value properties.

7. What are the term, renewal and termination conditions?

Check the contract length, whether it renews automatically, and how much notice is required to cancel. A good agreement allows termination for cause if service standards aren’t met. Some providers also offer termination for convenience with reasonable notice. Ask what the transition looks like if you switch providers, so coverage doesn’t lapse. Our guide on transitioning security vendors without gaps explains what a good handover includes.

Questions About Performance and Accountability

8. How will we know the guards are doing the job?

Ask what reporting you’ll receive and how often. Strong providers offer daily activity reports, incident reports, GPS-verified patrol checkpoints and regular supervisor site visits. Write key performance indicators into the contract so “good service” has a measurable definition.

9. What happens when a guard calls in sick or an emergency hits?

Every security plan needs a contingency. Ask how quickly a replacement guard will arrive, who you call after hours, and how incidents are escalated. Those response commitments belong in the contract, not just the sales deck.

10. Will you use subcontractors, and can we approve guard assignments?

Some companies subcontract shifts to other firms, which can affect training and accountability. Ask whether subcontracting is allowed and require written approval if it is. Also confirm that you can request a guard’s removal from your site and that the provider aims for consistent guard assignments.