How Security Companies Can Protect Themselves from Being Sued

Operating a security company means being burdened with a big responsibility — guarding people, property, and assets on a daily basis. But what most business owners fail to see is that your own company can be the next one to get hit if something fails. Ranging from negligence cases to lost paperwork, security companies tend to be surprised by lawsuits that could have been avoided through improved systems and filing.

The truth is, even when your security guards perform their duties correctly, poor documentation, expired licenses, or a communication gap with clients can expose your business to unnecessary risk.

Key Takeaways

Before we get into the nitty-gritty, here are the key takeaways you’ll learn:

• Write everything down - Each occurrence, patrol, and report should be recorded digitally with timestamps and GPS coordinates.
• Get compliant - Outdated guard licenses or missing certification is a lawsuit waiting to happen.
• Be open - Frequent reporting and communication keep clients on the same page and prevent miscommunication.
• Use technology to your benefit - Software such as Novagems’ incident reporting software for legal protection proves you are accountable.
• Don’t react, prevent - Legal defense is most secure when backed by forward-thinking, automated systems instead of explanations given after the fact.

If you follow these rules, you’ll create not only a safer firm but a legally more secure one.

Common Legal Risks Security Companies Face

Security companies work in one of the most legally vexed businesses. Any action taken by a guard, any contact with a client, and every report can be perilous. Here are the most prevalent legal traps that create lawsuits and how to avoid them.

• Negligence and Use of Force Claims

Negligence cases usually result from allegations that guards have not responded in the proper way or have applied excessive force. Such cases can be ruinous to a security company’s bottom line and reputation. Even if your personnel responded appropriately, without a thorough, dated incident report, it may be tough to demonstrate that in court.

Best Practice: Document each incident immediately via a mobile reporting system with photos, videos, and witness statements. Electronic records supported by GPS evidence are irrefutable evidence of your crew’s professionalism.

• Inadequate Training or Licensing Issues

Working with unlicensed or untrained guards is one of the quickest routes to getting sued—or losing your contract. Canada’s, the U.S.‘s, and the U.K.‘s compliance laws all mandate guards to have current licenses and certifications.

If a single license expires without notice, your insurance may become null. Avoid this by using automated tracking of licenses that notify you when certifications are about to expire. Novagems provides automatic reminders for renewal. Hence, ensuring your team remains compliant without the need for manual tracking.

• False Arrest and Privacy Violations

Security officers aren’t police officers, but clients and the public sometimes forget that. If a guard detains or questions someone improperly, it can lead to false arrest or privacy violation claims.

The primary defense in this case is well-documented post orders and guard training. Ensure your personnel understand their legal limits and can present evidence that they took official action. Novagems’ Post Orders function ensures guards have recent instructions available to them on their mobile app.

• Inadequate Documentation or Missing Incident Reports

When liability protection for security companies is concerned, documentation is important. Incomplete or missing incident reports might put your company in the wrong light, even when guards responded sensibly.

The cloud-based reporting system with auto-seconds and location time stamps saves all reports safely and available for easy review — a significant boon in the event of insurance claims or litigation.

How Security Companies Can Protect Themselves from Lawsuits

Avoiding lawsuits is not about being perfect — it’s about designing systems that make errors less probable and accountability the default. Small business owners often underestimate how common cyber attacks can be—yet 43% of cyber breaches each year are aimed at smaller businesses, specifically those with fewer than 500 employees Here’s how savvy and big security companies are minimizing risk and safeguarding their reputation.

1. Standardize Incident and Activity Reporting

Incomplete or inconsistent reporting is one of the largest vulnerabilities for security firms. When guards report incidents on varying forms of paper or omit important details, it undermines your defense if there is a dispute.

Incident reporting software for legal protection allows you to:

• Design standard report templates for every report type (theft, trespassing, property damage, etc.)
• Add pictures, audio recordings, or video clips for context
• Automatically record time, date, and GPS location
• Instantly review and approve reports through a supervisor dashboard

With Novagems, incident reports are saved digitally, decreasing paperwork and human error. Such detailed reports can support your guards in case of misbehavior — even after years have passed.

2. Enforce Training, Certification, and License Tracking

Missing certificates or expired licenses not only create compliance problems — they’ll cost you contracts and lawsuits.

By making your credential management digital, you can:

• Track each guard’s license and expiration date in a single system
• Get automatic reminders prior to renewals due
• Store digital versions of credentials for audits or legal examination

Example: If a guard’s provincial license has expired and you can’t show they were qualified when an incident occurred, you can be held liable — regardless of whether the incident wasn’t their fault or not. Novagems avoids this risk by automatically keeping everything current.

3. Ensure Transparent Communication with Clients

Most lawsuits are a result of confusion, rather than wrongdoing. When clients are unaware of what is going on at their locations, they may suspect negligence or inadequate supervision.

And the answer? Transparency.

Provide clients with real-time data on your activities with automated reports, community dashboards, and open communication pathways.

Utilizing a tool such as Novagems, clients can see:

• Live patrol activity
• Recent incident reports
• Guard attendance records
• Performance analytics

This transparency builds trust, reduces disputes, and shows clients that your company runs on integrity and accountability.

4. Use GPS-Verified Patrol and Attendance Logs

When incidents happen, the first question often asked is, “Was the guard really there?”

With GPS tracking and geofenced attendance, you’ll always have the answer. A digital guard tour system provides a verifiable trail showing where and when your team performed their duties.

This feature not only discourages fictitious claims but also assists you in optimizing routes and enhancing patrol efficiency.

In case a guard misses a checkpoint, supervisors are immediately notified, enabling quick remedial action, another potent safeguard against prospective negligence claims.

5. Store Policy Documentation Digitally

Your business’s policies and SOPs are the foundation of your legal argument. They show that your staff had clear guidance and that guards were trained to adhere to procedure. Even though 59% of small business owners with no cybersecurity measures in place believe their operation is “too small” to be attacked, this fosters a false sense of security.

Sadly, written documents tend to be out of date, lost, or disregarded. Transferring them to an electronic platform means any guard can access the most up-to-date version at any time.

With Novagems, you can:

1. Upload post orders directly into each location’s digital dashboard
2. Verify guard acknowledgement
3. Track history and compliance updates

This provides a sure audit trail — invaluable in investigations or liability audits.

FAQs

How can incident reporting prevent legal claims?

Detailed, time-stamped reports with photos and notes prove due diligence, helping security firms defend against false claims using tools like Novagems’ digital reporting.

How do GPS and digital logs serve as legal evidence?

GPS tracking and digital logs act as verified records showing guards were on site, offering reliable, court-acceptable proof of service.

What should be in a security company’s liability policy?

Include coverage for property damage, negligence, and guard conduct, supported by clear reporting and record-keeping standards.

How can software help ensure compliance and accountability?

Software like Novagems automates reports, license tracking, and patrol logs, ensuring every activity is compliant, traceable, and audit-ready