Investigations and Security Solutions Investigations, LLC


Did you know?

Security companies must be licensed and have the appropriate liability coverage including workman’s compensation liability before hiring and providing security officers. Although security guards must be licensed, they are not allowed to negotiate their own contract. They must work for a licensed security company or be proprietary that is hired by the company.  Individual companies and the guard can be held liable by New York State for negotiating these unlawful contracts.

What is Proprietary and Contractual Security?

There are two types of security; proprietary security also known as” in-house security” and contractual security. Proprietary security companies hire and compensate their own security employees. Contractual security is contracting with a licensed security company that will provide the guards to address any security concerns/issues.

Pros and cons of proprietary security versus contractual security?

Proprietary or In-house security companies appeal to organizations that are looking to reduce their financial cost associated with their security. As a result, contractual security can be very appealing since there are considerable savings to companies that outsource their security. The following are some of the advantages and disadvantages of proprietary and contractual security.

Advantages of Proprietary

Disadvantages of Proprietary

  • Better trained officers

  •  Loyal guards

  • Greater knowledge about the company,  its culture and the company’s/ task objectives

  • More efficient

  • More ambitious, motivated and proud of their performance and appearance because of their career potential

  • Less turnover of personnel. 

  • Cost advertising

  • Recruiting

  • Interviewing

  • Uniforms

  • Scheduling including sick and vacation

  • Cost of training

  • Fixed number of security officers

Advantages of Contractual Security

Disadvantages of Contractual Security

  • No individual employee compensation package

  • Complete freedom to terminate the services of an individual

  • Clients/companies can refuse and officer’s service and request a replacement

  • Termination can be immediate and without cause

  • Flexibility in security resources

  • Client Companies are not responsible for the expense of

  •  Recruiting

  • Advertising    

  • personnel interviewing

  • administration costs

  • timekeeping or payroll administration costs

  • Client can terminate the services of a contractual firm if that firm doesn’t provide the agreed services

  • Specialized needs or skills can be provided on an as needed and contractual basis.

  • Most contractual companies will employee officers with minimal qualifications
  • Large turnover in contractual security officers because the officer  is always looking for a better opportunity/better pay

  • Security Officers usually have less pride in their performance and little to no loyalty towards their employer or the clients

  • Security Officers often have low moral since they often work in environments where they receive little or any benefits from the clients

  • Security officers have little opportunity to grow with their organization.