How to Start an Armed Security Company: Licensing, Training, and Insurance

Starting an armed security company requires significantly more planning, licensing, and investment than unarmed services. The liability is higher, the training requirements are stricter, and the regulatory scrutiny is intense. But for companies that do it right, armed security commands premium rates and serves clients that unarmed services cannot.

Understanding Armed Security Licensing

Armed security licensing varies dramatically by state. Some states issue a single license that covers both armed and unarmed services, while others require completely separate applications, fees, and qualifications.

Common State Requirements

• Separate armed security company license (most states)
• Higher surety bond amounts than unarmed services
• Proof of firearms liability insurance
• Background check for company owners and officers
• Designated responsible person with armed experience
• Approved training curriculum for armed guards

Individual Guard Requirements

Each armed guard typically needs:

• Valid unarmed security license (prerequisite in most states)
• Firearms permit or armed endorsement
• Completion of state-approved firearms training
• Live-fire qualification (usually annually)
• Clean criminal background (stricter than unarmed)
• Psychological evaluation (required in some states)
• Drug screening

Insurance Requirements

Armed security insurance is substantially more expensive than unarmed coverage. You'll need policies that specifically cover firearms use.

Essential Coverage Types

• General Liability: Higher limits required—typically $2M-$5M for armed services vs. $1M for unarmed
• Professional Liability (E&O): Covers claims of negligence in your security duties
• Firearms Liability: Specific coverage for incidents involving firearms discharge
• Workers' Compensation: Higher classification codes and premiums for armed guards
• Assault & Battery Coverage: Critical for armed services—often excluded from general liability

Training Program Development

Your training program must meet state minimums, but smart companies go well beyond requirements. Thorough training reduces liability and improves performance.

Core Training Components

• Legal Authority & Use of Force: When deadly force is justified, state-specific laws, duty to retreat
• Firearms Safety: Safe handling, storage, and transport protocols
• Marksmanship: Accuracy under stress, target identification, backdrop awareness
• Situational Awareness: Threat recognition, conflict avoidance, de-escalation first
• Defensive Tactics: Non-lethal response options, arrest and detention procedures
• Emergency Medical: Trauma response, tourniquet application, first aid

Ongoing Qualification

Most states require annual requalification, but monthly or quarterly range sessions are advisable. Document all training meticulously—this documentation becomes critical if a use-of-force incident occurs.

Equipment and Firearms Standards

Establish clear policies for what firearms guards may carry and what equipment they must have.

Common Equipment Standards

• Approved firearm makes/models (most use 9mm or .40 S&W)
• Holster requirements (retention level, concealed vs. open)
• Ammunition type and quantity
• Body armor requirements (if any)
• Less-lethal options (OC spray, batons, Tasers)
• Communication equipment
• First aid/trauma kit

Company-Owned vs. Personal Firearms

Some companies issue firearms; others allow guards to carry personal weapons that meet specifications. Company-owned firearms mean more control and consistency but higher costs and storage/maintenance responsibilities.

Operational Considerations

Client Vetting

Not every client is worth the risk. Evaluate potential accounts for:

• Legitimate security need for armed presence
• Site conditions and threat environment
• Client's willingness to follow your security protocols
• History of incidents at the location
• Adequacy of proposed budget for proper armed coverage

Incident Response Protocols

Develop clear use-of-force policies that comply with state law and industry standards. Every guard must understand:

• When to draw a weapon (rarely)
• When deadly force is legally justified
• De-escalation requirements before force
• Immediate post-incident procedures
• Reporting and documentation requirements
• Cooperation with law enforcement

Pricing Armed Services

Armed security commands premium rates, but your costs are also significantly higher.

Cost Factors to Include

• Higher wages (armed guards typically earn 30-50% more)
• Insurance premiums (3-5x unarmed rates)
• Training costs (initial and ongoing)
• Equipment costs (firearms, holsters, ammunition)
• Licensing and permit fees
• Administrative burden (more documentation required)

Armed guard bill rates typically range from $35-$75/hour depending on location and assignment type, compared to $18-$35 for unarmed services.

Building Your Armed Guard Workforce

Finding qualified armed guards is challenging. Many unarmed guards aren't interested in or qualified for armed work.

Recruitment Sources

• Military veterans (often already trained with firearms)
• Retired law enforcement
• Existing unarmed guards interested in advancement
• Licensed security professionals from other companies
• Criminal justice and security degree programs

Screening Standards

Beyond state requirements, consider:

• Extended background check (10+ years)
• Multiple professional references
• Psychological screening (even if not required)
• Judgment and temperament assessment
• Physical fitness evaluation