How Much Should Private Security Cost? A Small-Business Guide to Transparency

 

Learn what goes into the true cost of hiring licensed security officers. From insurance to wages, All Nation Security Services breaks down why cheaper isn’t always safer.

Why Understanding the Real Cost of Security Matters

Hiring private security shouldn’t be about finding the cheapest quote—it should be about protecting your people, property, and business liability.

Unfortunately, many small businesses unknowingly put themselves at legal and financial risk by hiring cut-rate guard services that don’t meet state or city compliance standards.

At All Nation Security Services, we believe in transparent pricing and full legal compliance, so you understand exactly what you’re paying for—and what you’re protecting yourself from.

The Biggest Myth: “Security Guards Should Be Paid Minimum Wage”

Let’s break this down:
You cannot legally or safely hire a licensed security officer for minimum wage, especially in places like California, where:

• Cities like Los Angeles, West Hollywood, and Santa Monica have their own local wage ordinances.
• In many regions, fast food employees now start at $20/hour—yet clients expect trained, licensed security professionals to cost less?

If you’re quoted at a suspiciously low hourly rate, you’re likely looking at:

Under-the-table employee compensation
No insurance or tax coverage
No training or proper vetting

No Supervision or management

That kind of setup doesn’t just violate labor laws—it puts your business at major risk.

What Actually Goes Into the Hourly Security Rate?

Here’s a breakdown of what ethical, compliant security providers like All Nation Security Services include in the hourly billable rate:

Cost Component	Estimated % of Rate	Explanation
Guard Wages	$20 – $30	Must comply with local wage ordinances
Workers’ Compensation	8–13%	Based on employee payroll; security has high exposure
General Liability Insurance	10–16%	Based on Billable Hours & jobsite (school, transit, etc.)
Payroll Taxes	10%	Mandated by law
Health/Sick Pay/Retirement	5–8%	Required in CA; affects total cost
Onboarding, training & Uniforms	9–14%	Orientation, uniform, background testing, drug testing, screening, etc..
Data Usage	1-2%	If company is electronic, it is required by law to pay employees for their data usage
Overhead	3-6%	Dispatch, Training, Supervision
Profit Margin	1–5%	Industry standard, adjusted by contract volume

When you pay for legitimate security services, you’re not just paying for a person in uniform—you’re investing in training, insurance, supervision, and legal protection.

Why “Cheaper” Can Cost You Everything

You might think: “My budget only allows $18/hour, and I found a company to match it.”

But ask yourself:

• Will that guard be insured?
• Is their workers’ comp active?
• Are they trained in de-escalation or conflict resolution?
• Who’s liable if they hurt someone—or get hurt?
• What type of officer do you think you will receive for $18 an hour?

If a guard working under-the-table is injured on your property or assaults someone while working, your business could be named in a lawsuit—and not be covered by insurance.

The Legal Risks of Cutting Corners

Here’s what can happen when you hire non-compliant or underinsured security:

Security guard sues the client for injuries due to no coverage
Injured third-party sues the client after an altercation
Lack of proper screening leads to criminal behavior on-site
No supervision means guards “ghosting” shifts or mismanaging incidents

Most clients don’t realize they’re liable until after something goes wrong.

That’s why large organizations—retail chains, property managers, and construction firms—don’t use in-house security anymore: the risk is just too high

What Real Security Looks Like (And Why It’s Worth It)

When you work with a professional provider like All Nation Security Services, you get:

Licensed, trained, and background-checked officers
Full general liability & workers’ comp coverage
GPS tracking and reporting
Hands-on supervision
Officers matched to your site’s environment
Total legal compliance—no corners cut

Don’t Wait Until There’s a Lawsuit

The harsh truth is, many businesses don’t care until it’s too late—until there’s an incident, an injury, or a lawsuit.

You can avoid that by choosing a properly staffed, bonded, and insured security provider who values protection over pricing games.

At All Nation Security Services, we offer:

Transparent pricing
State and city-compliant wages
Fully licensed & insured officers
Custom site assessments

Call us at (888) 360-2525
Or request a quote at: www.allnationsecurity.com

Because security shouldn’t just be affordable, it should be right.