Security Guard Service Agreement: Free Contract Template

A well-drafted service agreement protects both you and your clients. It sets clear expectations, defines responsibilities, and provides legal protection when disputes arise. This guide covers the essential clauses every security guard service contract should include.

Essential Contract Sections

1. Parties and Definitions

Start by clearly identifying:

• Full legal name of your company
• Full legal name of the client
• Address of services (the protected property)
• Definitions of key terms used throughout the agreement

2. Scope of Services

Be specific about what you will and won't do:

• Type of security provided (standing guard, patrol, etc.)
• Hours and days of coverage
• Number of guards assigned
• Specific duties and responsibilities
• Services explicitly excluded
• Post orders reference (attach as exhibit)

3. Pricing and Payment Terms

• Hourly rate(s) for different service types
• Minimum hours per shift
• Holiday and overtime rates
• Billing frequency (weekly, bi-weekly, monthly)
• Payment terms (Net 15, Net 30, etc.)
• Late payment penalties
• Rate increase provisions

4. Term and Termination

• Initial contract term
• Auto-renewal provisions
• Notice period for termination (30-60 days typical)
• Termination for cause conditions
• Termination for convenience terms
• Final payment obligations

5. Insurance Requirements

Specify coverage you maintain:

• General liability limits
• Professional liability coverage
• Workers' compensation
• Auto liability (if applicable)
• Certificate of insurance provision
• Additional insured endorsement requirements

6. Liability Limitations

This is critical—work with an attorney:

• Cap on total liability (often limited to contract value)
• Exclusion of consequential damages
• Client's responsibility for their own property
• Force majeure provisions
• Waiver of subrogation

7. Indemnification

• Mutual indemnification provisions
• Security company indemnifies for guard negligence
• Client indemnifies for premises conditions
• Third-party claim procedures

8. Client Responsibilities

Define what the client must provide:

• Safe working conditions
• Access to facilities
• Guard post amenities (bathroom access, etc.)
• Communication of special events or hazards
• Emergency contact information
• Keys, access cards, or codes needed

9. Confidentiality

• Protection of client business information
• Protection of security procedures
• Non-disclosure obligations
• Return of confidential materials on termination

10. Independent Contractor Status

Clarify the relationship:

• Security company is independent contractor, not employee of client
• Guards are employees of security company
• Security company controls means and methods
• Tax and benefits responsibility

Additional Important Clauses

Non-Solicitation

Prevent clients from hiring your guards directly:

• Prohibition on hiring guards during and after contract
• Liquidated damages for violations (often 3-6 months wages)
• Reasonable time limitation (1-2 years)

Assignment

• Whether contract can be assigned
• Notice requirements for any assignment
• Successor provisions if either party is acquired

Dispute Resolution

• Governing law (which state)
• Mediation requirements before litigation
• Arbitration clause (if desired)
• Venue for any legal proceedings
• Attorney's fees provisions

Modification and Waiver

• Changes must be in writing
• No oral modifications
• Waiver of one breach doesn't waive future breaches

Exhibits and Attachments

Reference these as part of the agreement:

• Exhibit A: Post Orders / Scope of Work Details
• Exhibit B: Pricing Schedule
• Exhibit C: Certificate of Insurance
• Exhibit D: Emergency Contact List

Common Mistakes to Avoid

• Using a generic template without customization
• Failing to include liability caps
• Vague scope that leads to scope creep
• No termination provisions
• Missing rate increase mechanisms
• Inadequate insurance requirements
• No non-solicitation protection