You're comparing security companies for your warehouse, medical center, shopping center, or construction site. Most of them look professional on the surface. But some of them will leave you exposed — legally, financially, and physically. Here's how to tell the difference before you sign anything.
These are the seven warning signs we see trip up business owners and property managers across Los Angeles — and how to protect yourself.
The Seven Red Flags
- They Can't Produce a PPO License Number on the Spot
- They Quote You a Price Without Visiting Your Property
- Their Guards Aren't Wearing Uniforms or Carrying ID Badges
- They Won't Show You Proof of Insurance
- Their Online Presence Is Thin or Nonexistent
- They Require a Long-Term Contract Upfront with No Trial Period
- They Can't Explain How They Train Their Guards
1. They Can't Produce a PPO License Number on the Spot
Every legitimate security company in California operates under a PPO license issued by the Bureau of Security and Investigative Services (BSIS). If a company can't pull up their license number immediately, that's the first red flag. It should be on their website, visible on their uniforms, printed on their vehicles, and listed in every proposal they send you.
A lot of business owners skip this step. They hear a polished pitch and assume the company is legitimate. Wrong assumption. California has unlicensed operators running around calling themselves security companies — and they're still out there charging businesses money despite operating illegally. The difference between a licensed and unlicensed operator? Everything.
Here's what happens when you hire an unlicensed operator: Your warehouse in Vernon gets hit by a burglary. Your medical center in Torrance has a security incident. Your shopping center in Garden Grove faces a lawsuit. You call the company for support, documentation, insurance information. They're gone. Or they were never legitimate to begin with. You're left holding the liability. Your insurance carrier won't cover you. The guard wasn't background-checked properly. The company wasn't bonded. You're exposed.
Here's the simple verification: Ask for the PPO license number. Then go to search.dca.ca.gov and look it up yourself. Takes 60 seconds. Our license is PPO-12958 — that's the kind of visible, verifiable credential you're looking for. Check the expiration date. Make sure it's current. Check for any unresolved complaints or violations. A real company won't be offended by this. They'll hand you the information immediately.
Learn more about California security licensing requirements →
2. They Quote You a Price Without Visiting Your Property
A warehouse in Commerce has completely different security needs than a medical center in Torrance. The number of entry points, parking lot size, lighting conditions, foot traffic patterns, operational hours — all of it matters. If a company can quote you a price over the phone without stepping foot on your property, they're not doing their job.
What does a legitimate security provider need to assess before giving you a quote? The layout of your facility. Where the vulnerable entry points are. Lighting conditions at different times of day. Foot traffic patterns and your busiest hours. Any prior incidents or security concerns. Your current alarm system or access control. Who has keys. How many guards you actually need versus what you think you need. Whether you need armed or unarmed coverage. The operational complexity of your building.
If someone quotes you for a warehouse placement without walking the property, they're either desperate for business or they're dishonest. They're guessing. They're applying a formula instead of solving your actual problem. For a one-time event or emergency coverage, maybe a phone quote works. For an ongoing contract where a guard is on your property 40+ hours a week? No. A site visit is non-negotiable.
When you call for a quote, the right response is: "We'd love to help. When can we schedule a site visit?" If they don't ask to visit, they don't take your business seriously. Move to the next company.
Read our First-Time Hiring Guide →
3. Their Guards Aren't Wearing Uniforms or Carrying ID Badges
California law requires security guards to wear identification. There's no gray area here. A guard shows up in street clothes without an ID badge? That's not just unprofessional. It may be illegal. It also defeats most of the purpose of having security in the first place. A deterrent doesn't work if nobody knows you have one.
You see a guard at your construction site in street clothes. Nobody on your job site knows they're a guard. People talk to them like a regular person. Actual security impact? Minimal. Your tenants at a shopping center in Fullerton don't recognize the guard. Confidence in security? Gone. A patient walks into your medical center and can't identify who the security person is. That creates confusion and doesn't deter bad behavior.
Professional appearance matters more than most business owners realize. It matters to your employees. It matters to your patients or customers. It matters to potential thieves or troublemakers scoping out your property. A uniform and badge signal authority and accountability. Street clothes signal that you hired someone for cheap and didn't care enough to do it right.
When you visit the company for a meeting or see their guards on deployment, look for uniforms. Look for visible ID. Look for professionalism. If they're cutting corners on appearance, they're probably cutting corners everywhere else too.
4. They Won't Show You Proof of Insurance
Ask the company for three documents: A Certificate of Insurance (COI), proof of workers' compensation coverage, and their General Liability limits. A legitimate company should have these ready. They should email them to you in minutes. If they say "we're working on it" or "we'll get those to you eventually," walk away. This tells you everything about how seriously they take their business.
Why does this matter so much? Because if a guard gets injured on your property and the company doesn't have workers' comp, your business is liable. That's medical bills, lost wages, potential legal action — all on you. If there's an incident on your property and the company doesn't have general liability coverage, you're the one paying damages, not them.
For any long-term placement, especially at a warehouse in Commerce, a medical center in Downey, or a construction site, proof of insurance is critical. Your property management company will require it anyway. Your insurance carrier needs it. There's no excuse for not having this ready. If a company can't produce insurance documents, they're not stable. They might disappear in six months, leaving you with an uninsured guard and no recourse.
Standard requirements: $1 million General Liability per incident, $2 million aggregate. Workers' comp coverage is legally required. If they're missing either, that's a deal-breaker.
Understanding Security Guard Costs →
5. Their Online Presence Is Thin or Nonexistent
A company that's been in business for more than a few years should have a digital footprint. A Google Business profile. Real client reviews. A physical address you can verify. A real website with substantive content, not stock photos and vague claims. If you can't find them online, or if what you find looks generic or hastily put together, that's suspicious.
Here's what you're looking for: A company with a verifiable physical address. Scaife has been headquartered in Lawndale since 1997 — that's the kind of track record to look for. Real reviews and testimonials from actual clients. A Google Business profile with genuine customer feedback. A website that shows actual experience in your property type — warehouses, medical centers, shopping centers, construction sites. References you can call.
When you're researching a security company, check the BBB. Look at Google reviews. Search for them on industry directories. See if they're mentioned in any news articles or case studies. A company operating legitimately in Garden Grove, Long Beach, or City of Industry should have a presence online. If they're completely invisible except for a phone number and an email, they might not be the stable operation you're trusting with your property.
One more thing: Be skeptical of the company that has tons of five-star reviews that all sound identical or mention no specifics. That's often fake. Real reviews are varied, specific, and mention actual experiences.
Learn about Scaife's Background →
6. They Require a Long-Term Contract Upfront with No Trial Period
If a company won't let you try their service for 30 days before committing to a year-long contract, why would you trust them? A reputable company stands behind their work. They're confident that once you see what their guards can do, you'll want to keep them. They don't need to lock you in.
Think about it from a practical standpoint: You've never worked with this provider. You don't know if their guards will show up on time. You don't know if they understand your property. You don't know if they're responsive when you call with an issue. Why would you commit to 12 months before testing any of that? You wouldn't. Yet some companies insist on it.
When you're interviewing security providers, ask about trial periods. A 30-day trial is standard and fair. Some companies will do 15 days. Either way, you get real world experience before you're locked in. If they're unwilling to offer a trial, ask yourself: What are they afraid of? Why won't they let you see what you're paying for?
A trial period is worth more than a 15% discount. It's worth more than any promotional offer. It's your protection.
Read our First-Time Hiring Guide →
7. They Can't Explain How They Train Their Guards
California law requires all security guards to complete Powers to Arrest training. That's baseline. WMD awareness training is required annually. First aid and CPR certification should be standard. But here's what separates good companies from bad ones: What do they do beyond the minimum?
When you're hiring for a long-term placement — a guard at your warehouse in El Monte or your medical center in Santa Clarita — you want someone who's well-trained. You want site-specific orientation. You want ongoing training, not just "we did the legal minimum once." You want a company that invests in their guards because that investment flows directly to your security.
Ask the company to walk you through their training program. What do they cover? Who teaches it? Is it annual? Is it specific to different property types? How do they evaluate whether a guard is ready for deployment? If they can't articulate this clearly, they're not investing in quality. They're hiring bodies and throwing them on properties without adequate preparation.
The best companies have detailed training programs. They know what their guards are capable of because they've prepared them properly. They can tell you exactly what training a guard has completed and what certifications they hold. A company that says "uh, they have their license" and can't say more than that? That's a red flag.
Learning about Hiring Security Guards in LA →
What to Do Instead
Now that you know the red flags, here's the simple version: verify the license, visit the property, demand proof of insurance, ask about training. A legitimate company won't tolerate these questions — they'll welcome them. They understand that you're doing due diligence. That's what a smart business owner does.
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