How to Verify a Security Company's License Before You Sign
Hiring an unlicensed or uninsured security company is one of the few mistakes in this process that can cost you more than the contract itself. If an incident or injury happens on your property and the provider is not properly licensed and insured, the liability can land on you. The good news is that a license check takes only a few minutes, and most states put the tools online for free.
Two levels of licensing to check
Security regulation in the U.S. is state-based, and it usually operates on two levels:
- The company (agency) license. Most states license the security business itself, for example a Private Patrol Operator license in California or a Class B Agency license in Florida.
- The individual officer license. Each guard should hold a current state guard card or registration, and each armed officer a separate firearm permit.
Both matter. A company can be licensed while sending an unlicensed guard, or vice versa, so verify the business and the people who will work your site.
Company license by state: examples
| State | Company license | Regulator | Individual credential |
|---|---|---|---|
| California | Private Patrol Operator (PPO) | BSIS | Guard Card (+ firearm permit) |
| Texas | Security Company License | DPS Private Security Bureau | Level II / Level III registration |
| Florida | Class B Agency License | FDACS | Class D (+ Class G for armed) |
| New York | Watch, Guard & Patrol Agency license | NY Dept. of State | Security Guard Registration |
A few states regulate only at the city or county level rather than statewide, so if a lookup comes up empty, check with the local authority before assuming the worst, or the best.
How to run the license check
- Ask for the license number and legal business name up front. A legitimate company provides these without hesitation.
- Search the state regulator's online license lookup. California's BSIS, Florida's FDACS, Texas DPS, and New York's Department of State all publish free searches.
- Confirm the status is active, not expired, suspended, or revoked, and that the name matches the company you are dealing with.
- Spot-check officer credentials the same way, especially for armed posts.
Insurance is part of the check
A license is not enough on its own. Ask for current certificates of insurance showing:
- General liability with limits that fit your risk, higher for armed work.
- Workers' compensation, so an injured officer is the company's responsibility, not yours.
You can ask to be named as an additional insured for larger contracts. A licensed but uninsured provider still leaves you exposed, so treat both as mandatory. These checks are the foundation of our wider buyer's checklist.
Ask for the certificate of insurance (COI) to come from the company's insurer or broker rather than as a photocopy, and check that the policy dates are current, not lapsed. On an ongoing contract, request a fresh COI at each renewal so coverage never quietly expires while officers are still working your site.
Red flags that should stop you
- Reluctance to share a license number or insurance certificate.
- A license that is expired, suspended, or does not match the business name.
- No workers' compensation coverage.
- Armed officers without individual firearm permits.
- A rate far below the market with no explanation, often a sign corners are being cut on licensing or insurance. Compare against our guide to what a security company charges per hour.
Re-check over the life of the contract
Licenses and insurance expire, typically every one to two years, so for an ongoing contract, re-verify periodically and keep current certificates on file. Once you have confirmed a company is licensed and insured, move on to matching the service to your needs, whether you need armed or unarmed coverage and how many officers. Start by shortlisting providers with our company comparison tool.
Frequently asked questions
How do I check if a security company is licensed?
Ask for the company's license number and legal name, then search your state regulator's free online license lookup, such as California's BSIS, Florida's FDACS, Texas DPS, or New York's Department of State. Confirm the license is active and the name matches before you sign anything.
What insurance should a security company have?
At minimum, general liability with limits that fit your risk and workers' compensation for its officers. Ask for current certificates, and for larger contracts you can request to be named as an additional insured. A licensed but uninsured provider can still leave you liable for incidents.
What if my state does not show the company in a license lookup?
A few states regulate security only at the city or county level rather than statewide, so an empty statewide result is not always a red flag. Check with the local licensing authority. If no jurisdiction can confirm a license and the company will not provide proof, do not sign.
Why does verifying a license matter so much?
Because liability can flow to you. If an unlicensed or uninsured company's officer is involved in an incident or injury on your property, you may share the exposure. Verifying licensing and insurance up front is a few minutes of work that protects you from a much larger cost.
Sources
- California Bureau of Security and Investigative Services (BSIS) - Guard Card, Exposed Firearm Permit, and Private Patrol Operator licensing, 2026.
- Florida Department of Agriculture and Consumer Services (FDACS), Division of Licensing - Class D, Class G, and Class B agency licenses, 2026.
- Texas Department of Public Safety, Private Security Bureau - individual registration levels and company licensing, 2026.
- New York Department of State, Division of Licensing Services - security guard registration, training hours, and watch/guard/patrol agency license, 2026.