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Choosing a company

How to Vet a Security Company Before You Sign a Contract

Updated 2026-07-20 · 8 min read · Sacramento, CA dispatch

PPO #122730

Short answer

Before signing with any security company, verify their Private Patrol Operator (PPO) license number directly with BSIS, confirm current general liability insurance and workers' compensation coverage, check that guards hold valid guard cards (and firearms permits if armed), and ask about supervision ratios and how incidents get reported. A company that can't produce these quickly is a red flag regardless of how the sales conversation goes.

Start with licensing, not price

In California, any company providing contract security guard or patrol services must hold a Private Patrol Operator (PPO) license issued by BSIS, and every guard must hold a valid guard card. Both are checkable through BSIS's public license lookup — this takes a few minutes and should happen before any deeper conversation about pricing or scheduling. A company operating without current licensing is a legal and liability risk for the property that hires them, not just the company itself.

Beyond licensing, ask direct questions about insurance limits (general liability and workers' compensation), how officers are supervised (site visits, check-in calls, GPS-verified patrol routes), how incidents are documented and reported to you, and what the escalation process looks like if a guard doesn't show up or performs poorly. A company with clear, specific answers to all of this — not vague reassurance — is usually the more reliable choice.

Vetting checklist at a glance

AreaWhat to ask forWhy it matters
LicensingPPO license number, verify with BSISConfirms legal authority to operate
Guard credentialsGuard card status, firearms permit if armedConfirms individual officers are compliant
InsuranceCertificate of general liability and workers' compProtects you if something goes wrong on-site
SupervisionHow often officers are checked, GPS/patrol verificationConfirms coverage is actually happening as billed
ReportingSample incident report, reporting cadenceShows what documentation you'll actually receive

Questions to ask every vendor before signing

  • Can you provide your PPO license number so I can verify it with BSIS?
  • What are your current general liability and workers' compensation coverage limits?
  • How do you verify that patrol passes actually happened (GPS checkpoints, timestamped reports)?
  • What does an incident report look like, and how quickly do we receive one after an event?
  • What's your process if an assigned officer calls out or underperforms?
  • How long have your current officers been with the company (a rough sense of turnover)?

Cost drivers to watch for in proposals

The lowest hourly rate in a set of bids isn't automatically the best value — check whether the rate includes supervision, reporting, and insurance at the levels described above, or whether those are stripped out to hit a lower number. Our RFP and vendor comparison toolkits (in the board toolkit) walk through comparing bids on scope rather than rate alone.

Official sources & local data

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Connected concepts

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The services this applies to

Where we cover this

Questions we get every week

How to Vet a Security Company Before You Sign a Contract — the follow-ups

How do I verify a PPO license is real?
Use the BSIS license search tool on their website with the company's license number or name to confirm status and standing.
What if a company won't share insurance certificates?
That's a significant red flag — reputable companies routinely provide certificates of insurance to prospective clients as part of the bidding process.
Should I get multiple bids?
Yes, generally at least three, compared using a consistent scope document (an RFP) so pricing differences reflect the vendor, not differing assumptions about coverage.

Keep reading

All 8 Security Decision Center pages

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