Why Businesses Are Getting It Wrong
When it comes to security, business owners need to be aware of a hidden risk—security brokers. These nationwide security management firms, also known as brokers, present themselves as industry experts, but in reality, they don’t provide security services at all. Instead, they outsource contracts to the cheapest bidder, leaving businesses vulnerable to poor service, legal liability, and major security risks.
This post will break down why businesses are making a mistake by using security brokers, how the broker system works, and what you should do to ensure your company hires the right security professionals.
The Problem With Security Brokers
Security brokers do not own security companies or employ security officers. Instead, they act as middlemen—their only job is to find a company willing to take a contract for the lowest possible price.
Here’s what happens when a business hires a broker:
✔ They are not getting trained security professionals. Brokers simply find a company willing to take the job for the lowest bid—often sending the most unqualified guards.
✔ Brokers don’t hold security licenses. Without a security license, they avoid legal responsibility if something goes wrong.
✔ They piggyback on subcontractors’ insurance. Instead of protecting the businesses they work with, brokers ensure only they are covered, leaving their clients exposed to legal liability.
✔ They operate under multiple business licenses. This allows them to present one name to corporate clients (like Walmart or CVS) while subcontracting under a different name, hiding their true operations.
A Real-World Security Failure Caused by Brokers
Let me share a recent experience that perfectly illustrates why security brokers are a major problem for businesses.
A nationwide security broker contracted a security company to provide guards for a major retail store during the busy holiday shopping season. The result?
🔴 The first security guard harassed female customers and a 16-year-old employee.
🔴 The replacement guard was just as bad—and even claimed he “owned the company” when asked to leave.
🔴 The store manager felt unsafe and left the premises.
At this point, the store’s loss prevention team stepped in and fired the broker’s security company. That’s when I got a call to replace them.
By the time I arrived, the damage had already been done. The store could have been sued for allowing a 16-year-old employee to be sexually harassed on the job. The broker knew about the issue but didn’t care—they had simply gone with the cheapest provider without vetting them.
When I confronted the broker, they immediately renegotiated my fees because they knew they were legally exposed.
How Brokers Exploit Businesses & Security Companies
Security brokers don’t care about safety or quality—they care about profit. Here’s how their business model works:
1️⃣ The Parent Company (ABC123) secures big contracts with major corporations like Walmart, Holiday Inn, and even state or federal agencies.
2️⃣ The Parent Company creates a shell company (DEF456) that handles subcontracting, keeping the real operations hidden from clients.
3️⃣ They offer subcontractors the lowest possible rate, often cutting wages to $8–$11 per hour, meaning the guards on-site are often untrained, underpaid, and unreliable.
4️⃣ They shift all liability to the subcontractor, avoiding responsibility when things go wrong.
5️⃣ The result? Corporations pay for security but receive low-quality, unprofessional service that can actually increase liability.
Why Businesses Should Avoid Security Brokers
🔹 They cut costs at the expense of safety. If a security company pays low wages, don’t expect professional security officers.
🔹 They expose businesses to lawsuits. If an incident happens, business owners can be held liable—not the broker.
🔹 They create a revolving door of untrained guards. Most subcontractors hired by brokers are desperate for contracts, meaning they’ll send anyone to the job, regardless of qualifications.
How to Hire the Right Security Provider
If you’re looking for security, avoid brokers and work directly with a reputable security company. Here’s what to do:
✅ Ask if they employ their own security officers. A real security company hires and trains their own staff.
✅ Verify their licensing and insurance. Never work with a firm that doesn’t hold a security license or piggybacks on subcontractors’ insurance.
✅ Ask about officer qualifications and pay rates. If security officers are underpaid, you’re not getting quality protection.
✅ Avoid companies that outsource to third parties. If they can’t provide their own guards, find someone else.
The Bottom Line
If you’re hiring security, don’t trust a middleman. Security brokers do not provide real security solutions—they just create a dangerous, low-cost cycle that puts businesses at risk.
If safety is a priority, work directly with a licensed, experienced security provider that puts quality over profit. Your business—and your customers—deserve nothing less.