Beyond Theory: Analytics and AI Reshaping Security Operations

David Libesman, TEAM Software by WorkWave, CALSAGA Network Partner

The security industry has steadily adopted technology solutions over the years. While some manual processes still exist, many companies are now using ERP systems and mobile tools to manage their workforce and operations. Now, the industry is on the precipice of seeing a meaningful shift yet again.

Ever since AI chatbots and learned language models hit the mainstream market, there’s been buzz about how advanced analytics and artificial intelligence might one day transform security operations. What’s different now is that the buzz is being turned into action: security companies are able to see, with tangible deliverables in reach, what this disruption might actually mean for their business. In my role as SVP and GM of AI & Data Analytics at WorkWave, I’m fortunate enough to meet with security leaders in the TEAM Software network firsthand and really be able to talk through the practical applications and real results these changes will bring.

Disrupting the Security Industry

While many security companies use digital systems for their operations, these core platforms can lack the advanced analytics capabilities needed to fully optimize the workforce. Even with an ERP system in place, when data isn’t being fully leveraged for decision-making, the results are predictable: higher costs, lower efficiency and compromised service delivery on contracts.

Think about some of the most common problems you experience day-to-day:

  • Labor shortages and high turnover make maintaining proper staffing difficult
  • Scheduling inefficiencies and errors
  • Limited access to real-time information leads to reactive management
  • Difficulty proving compliance with SLAs, leading to client churn

These, among others, always boil up to the surface because they directly impact your bottom line. And, many of these issues can be helped by improving one thing: your data.

While AI is the buzzword of disruptors, a foundational element of AI’s success relies on the quality of data being taken into account. When AI is built using a powerful data warehouse as its keystone, then the possibilities become endless. Stakeholders in meetings are no longer forced to choose which system of record to believe in if the numbers don’t match up. Field supervisors can access information in near-real time, leading to agility in operations and same-shift decision-making. With data as the root of the reason behind AI, the possibilities become endless.

Layering Intelligence on Existing Systems

What’s important to understand about this technological disruption is that analytics and AI aren’t replacing your current ERP or workforce management system – they’re enhancing it. By adding these capabilities on top of your existing platforms, you’ll be able to unlock new potential from the data you already collect. For example, you’ll be able to use it to:

Optimize Security Scheduling: AI-powered tools analyze your historical timekeeping data to predict staffing needs based on threat levels, property occupancy and events. This reduces overtime costs while ensuring proper coverage, even accounting for travel time between sites and guard qualifications.

Track Performance in Real Time: Advanced dashboards showing guard productivity, attendance patterns and patrol completion give managers immediate visibility, letting them address issues before client security is compromised.

Forecast Labor Needs: Predictive analytics turn your historical data into staffing forecasts weeks or months ahead, giving time to recruit and train staff before shortages occur.

The Business Impact

What do these improvements mean for security operations? In bottom-line terms, it means:

Lower Labor Costs: By optimizing staffing levels and reducing unnecessary overtime, security companies may be able to see significant reductions in labor expenses. When you consider that labor represents a very high percentage of operational costs in security, even small improvements deliver substantial savings.

Better Client Satisfaction: Analytics ensure qualified guards with appropriate training are consistently at the right locations. This reliability strengthens client relationships and leads to more valuable contracts.

Improved Employee Retention: More predictable scheduling, fewer last-minute changes and better matching of skills to assignments improve guard satisfaction. In an industry with high turnover, even modest improvements in staff stability create substantial savings in hiring and training.

Greater Operational Control: With systems handling reporting, performance tracking and resource allocation, security managers can focus on strategic priorities like business growth and client relationships.

From Talk to Action

These changes are moving fast. There is no doubt that companies that add these analytical capabilities to their current platforms gain a competitive edge. You’ll manage workforce challenges more effectively, control labor costs more precisely, and position your business for health–even as the economy tightens. For security, the future is happening now – visit teamsoftware.com for more information.

David Libesman, SVP & GM, AI& Data Analytics Business Unit at WorkWave

David Libesman is a visionary SaaS executive with an entrepreneurial spirit and track record of developing, monetizing and growing data analytics & AI product strategy and business. David is well-versed in driving strong sales through enterprise channels, as well as building, developing and retaining high-performing teams. He aims to bring best of breed AI and analytic capabilities to boost growth and profits for TEAM Software customers through data-driven strategies.

 

Financial Technology: The Hidden Workforce Retention Tool

Jacob Olins, TEAM Software by WorkWave, CALSAGA Network Partner

As leaders in the security industry, you’re well aware about how difficult the labor market can be and how employee churn can impact your bottom line. Finding qualified candidates, conducting background checks and training new staff consume significant resources and time, all while your current staff struggles to keep SLA’s managed. That’s why it’s more important than ever to lead with a retention-first approach across various aspects of your business.

This is where financial technology can serve as an interesting retention tool for your business. Beyond simply processing payments, modern financial systems can directly address employee needs and operational pain points that affect how people experience your company day to day.

Employee-Focused Financial Solutions

The benefits of financial technologies aren’t siloed in accounting departments. HR professionals increasingly recognize its value for employee retention and workplace efficiency.

Access to earned wages has emerged as a particularly effective retention tool. According to our partner research, two-thirds of employers state that earned wage access makes the greatest day-to-day impact on their employees, outranking other financial wellness benefits. That’s because this benefit offers a flexible solution to a fundamental need: control over when employees can access money they’ve already earned.

The traditional two-week pay cycle doesn’t align with how many employees manage their finances. Bills, rent and unexpected expenses rarely wait for payday. By offering more flexible access to earned wages, you acknowledge this reality and provide a valuable solution that builds loyalty in ways that conventional benefits often miss.

These numbers matter for your retention strategy. When employees can access their pay when they need it, they gain a benefit that addresses real-life financial needs. This practical support creates a compelling reason to stay with your company. Our partner even reports improvements in employee retention as high as 36%.

Operational Efficiency Through Financial Technology

While it’s important to recognize the opportunities for fintech across your departments, including HR, it’s also important to redouble your efforts in implementing fintech as a value-add in your financial departments. Take the earned wage access example above. It’s important to note that with the right provider, this type of employee benefit should not add any additional burden to your existing payroll processes and teams. Remember, the goal is to make their jobs easier, not harder. The same methodology can be applied to other business functions.

Think of this: On average, it might take your team 10-15 minutes to process a single invoice. While seemingly small, this type of administrative overhead can multiply quickly across an organization. An employee handling hundreds of invoices a month could dedicate entire days to completing these tasks. This challenge becomes even more significant when trying to properly allocate those invoices and individual line items to the correct jobs—a critical aspect of maintaining accurate job costing that directly impacts profitability tracking.

The time saved from automating routine financial processes is substantial. Organizations using automated financial solutions report their teams spend 70% less time processing invoices. This creates opportunities to redirect those working hours to higher-priority tasks.

Automated reconciliation reduces month-end workloads while improving accuracy. Electronic payments reduce paper processing time while costing less than traditional check systems. By automating AP processes, you also streamline job costing, enabling your team to easily track which materials and services belong to which jobs without the tedious manual work. Each improvement frees up time that benefits both your organization and individual employees.

Time spent on manual financial tasks has a hidden cost: workplace satisfaction. When employees spend excessive time on repetitive financial processes, it creates a particular kind of frustration. This frustration often leads to disengagement and eventually turnover. By reducing this source of friction, financial automation directly supports your retention goals.

Building a Comprehensive Approach

The connection between financial systems and employee retention is clear. When you provide flexible access to earnings, you address practical employee needs. When you reduce time spent on routine financial tasks, you create a more efficient workplace. Both approaches directly contribute to employee retention where it matters most. Start by examining what financial flexibility options might address specific needs in your workforce. Then consider where your financial processes consume disproportionate time and could be streamlined.

Every retention advantage matters. Financial technology provides a practical, measurable way to differentiate your organization and address real employee needs. The result is a more stable, efficient and engaged workforce.

If you’re looking to learn more about fintech-driven operations, check out this fintech blueprint guide.

Jacob Olins is the SVP & GM of Fintech at WorkWave, where he oversees all aspects of WorkWave Fintech. Olins joined WorkWave in 2023 with over a decade of experience working in financial services & technology, specializing in embedded finance & payments. Prior to WorkWave, Olins held leadership positions at Epos Now, JP Morgan Chase, Verifone, Inc., and Citibank.

Achieve Business Objectives with Effective Performance Counseling Techniques

Anne Laguzza, The Works Consulting, CALSAGA Network Partner

The key to increased productivity and efficiency is in asking.

Asking is one key element of effective performance counseling techniques that help leaders achieve business objectives.

Picture this: You oversee an employee who is not accomplishing all their required tasks and not completely following post orders. This is becoming an issue as the employee’s behavior is not aligning with the company’s values, and productivity and efficiency are decreasing.

When this happens it’s easy for leaders to assume they know why this is happening – the employee must be distracted or using their time incorrectly. But, what happens when you ask before you assume?

This scenario happened recently with a security company I work with, and the solution ended up being easier than they thought!

The leader scheduled a meeting with the employee, and then, prepared by using our Employee Performance Counseling checklist. (Download our FREE checklist here.) During the meeting, the leader reviewed expectations, stated their concerns and then asked why this was happening. The employee disclosed that they felt overwhelmed and had too many things on their plate. They hadn’t complained or mentioned it because they felt responsible for figuring it out on their own.

Once the leader understood the challenge, they were able to work through the employee’s to-do list and collaborate on solutions that worked for both the leader and the employee. The leader then continued to monitor their performance and check in, providing feedback and coaching consistently.

Long-term results? The employee’s performance improved, and they showed pride in doing the right thing. Productivity and efficiency increased, and business objectives were achieved.

This is effective performance counseling in action.

Every leader can apply these techniques and reap the benefits by following these 4 steps:

  1. Set clear expectations and goals
  • For example, you might have a company-wide expectation that states: “We want officers that are reliable, honest and customer service oriented.” When you have a conversation with a low performer, you can individualize this expectation to address specific concerns: “The expectation is that all our officers are reliable. You have been repeatedly late and I need you to report to work on time for the next 3 shifts.”
  1. Monitoring and measuring performance
  • Telling an employee something once, training them once – doing anything once – is likely not going to stick. You as their leader will need to monitor and determine how they are doing. And you likely are going to need to repeat yourself more than once.
  1. Providing feedback and coaching
  • Every employee should be trained, given an opportunity to perform/improve and have their performance evaluated more often than once a year or only when things are going wrong. When you notice performance is not meeting expectations, you schedule a meeting and ask why. Additionally, on a consistent basis, you should be meeting with your employees to tell them what they are doing well and that you value them on your team. Most leaders spend more time telling someone what they are doing wrong than what they are doing right.
  1. Evaluating and improving performance
  • This looks like giving every employee ongoing regular feedback (positive and negative) and evaluating how they are progressing .

Once you complete step 4, it’s time to start the cycle again!

After implementing performance counseling techniques, some organizations have reported a 10-30% increase in productivity and efficiency (these numbers are highly dependent on the situation and what is being measured). Consistently, it is reported that it DOES have a positive impact overall.

Employees who receive performance counseling want to come to work – they feel PRIDE when they put on their uniform or show up at your office. They want to do the right thing for the company because they care. They call in sick less, make less mistakes and have less injuries.

When employees know the boundaries and expectations, they are more likely to stay and feel happier at their jobs because they understand the parameters. This is often exactly the opposite of what leaders think. Employees report that they feel safer in an environment that is clearly defined and leaders provide them with feedback that helps them meet expectations.

From officers to admin staff, every employee can benefit from performance counseling. And, leaders benefit from achieving business objectives.

Need more help improving employee productivity and efficiency? Email Anne at solutions@theworksconsulting.com.

Anne Laguzza is the CEO of The Works Consulting, a CALSAGA Network Partner. As a seasoned business executive with human resources management, leadership development, and performance coaching experience, Anne works with clients from a variety of industries to develop better systems, maximize employee productivity, and enable management to focus on business growth. For more information, check out theworksconsulting.com or email anne@theworksconsulting.com. You can also find Anne on Instagram and LinkedIn.

Member Spotlight – Saga Security Services Inc.

Shela Borr, CALSAGA Ambassador Committee Co-Chair

In this quarter’s Member Spotlight, the CALSAGA Ambassador Committee is proud to feature Saga Security Services Inc.! Founded on a strong platform of integrity, professionalism, and excellence, Saga Security is committed to safeguarding people, assets, and reputations through innovative solutions, proactive strategies, and a highly trained team.

Saga Security’s comprehensive range of services is tailored to meet the diverse needs of their clients, and their mission extends beyond providing security. They strive to build lasting partnerships rooted in reliability, transparency, and exceptional service. With customer satisfaction at the core of their operations, Saga Security continually adapts and improves to align with industry best practices and the unique needs of each client.

Since joining CALSAGA in 2022, Saga Security’s executive management team has brought a collective 18 years of security industry experience to their clients and the broader security community. Their knowledge and dedication are evident not only in their service delivery but also in the strong, hands-on leadership approach of owner Jose Marrero, who is often personally present to ensure operations exceed expectations.

Looking ahead, Saga Security recognizes several challenges facing the industry including technological advancements, rising threats, workforce development, regulatory changes, and economic pressure. Saga Security believes CALSAGA plays a critical role in helping members navigate these challenges through advocacy, education, industry updates, and legislative representation. The organization’s efforts ensure that security professionals are empowered with the tools, resources, and support needed to thrive in a rapidly evolving environment.

Saga Security Services is distinguished not only by their commitment to excellence but also by the trust they have earned from their clients. Long-term partnerships and enthusiastic testimonials highlight their professionalism, responsiveness, and proactive service. Notably, Saga Security was honored as the Veteran-Owned Small Business of the Year in 2023 by the Veteran East County Alliance (VECA), a testament to their dedication and impact within the industry and their community.

In conclusion, Saga Security Services Inc. stands as a strong example of professionalism and service within the security industry. Their commitment to quality, innovation, and client satisfaction exemplifies the very best of what CALSAGA members strive to achieve.

 

 

THE SECURITY INDUSTRY’S NEED FOR EARNED WAGE ACCESS

Ryan Faith, TEAM Software by WorkWave, CALSAGA Network Partner

Even as the security industry works to improve its hiring rates, the labor market remains challenging for companies with distributed workforces.

A major problem? High employee turnover.

To mitigate this significant staffing issue, security companies must consider the value of strong retention programs and look at options that provide employees with additional benefits – like earned wage access.

What is Earned Wage Access, and why is it helpful?

Earned wage access provides a way for employees to receive pay for hours they have worked, without waiting for the next scheduled payday. This seemingly minor perk has proven to be an impactful benefit, with one security company attributing it to helping them earn a Great Place to Work Certification.

According to Bankrate’s 2024 Annual Emergency Savings Report, a staggering 59% of Americans are uncomfortable with their level of emergency savings. Another 93% of hourly workers find that managing their finances is stressful, with 71% saying that stress has a negative impact on their mental or physical health, according to PwC’s 2024 Employee Financial Wellness Survey. That same report discovered that one in three full-time employees say that money worries have negatively impacted their productivity at work.

As the traditional paycycle can unfortunately leave employees feeling financially vulnerable, this benefit gives your employees control over their finances and a way to easily reduce stress. Ultimately, this can improve their mental and physical health and helps promote improved productivity, which can increase operational efficiency throughout your business.

What are the Immediate and Long-term Benefits?

Employee Benefits

The immediate benefits to implementing earned wage access include instant financial flexibility, reduced financial stress and improved financial wellness of your employees.

It allows employees to access their earned wages immediately, so that they can use it to cover life’s expenses when the unexpected occurs, and it can help them build healthier financial habits to ultimately achieve their financial goals. In fact, 60% of earned wage access users say that they feel less stress about their finances following activation of the service, according to a 2023 user survey from earned wage access provider, DailyPay.

Employer Benefits

Earned wage access brings just as many benefits to you as the employer as there are for your employees.

First, it helps alleviate the ongoing labor issue – on average, companies see an increase of employee retention as high as 36%, according to a survey of internal data between TEAM Software and partner DailyPay.

Second, it helps provide a competitive advantage. On average, the same internal survey showed that 86% of companies with an EWA solution believe it helps uniquely separate them from their top competitors. In an industry that always struggles with retaining top talent, this helps retain more people — resulting in better operational performance overall over other companies.

Lastly, it is simple to activate with no ongoing management of the feature. Your employees will have access to their earned wages before payday without disrupting your payroll cycle or your revenue. It’s a win-win for all parties involved.

Software Integration for Easy Activation

Earned wage access is currently an add-on feature available through TEAM Software’s ERP solution, WinTeam. For more information on the benefits of earned wage access and TEAM Software’s solutions built specifically for security companies, visit us at teamsoftware.com.

Ryan Faith, Account Management Team Lead at TEAM Software by WorkWave

Ryan is a customer advocate who partners with TEAM Software by WorkWave customers to help identify where software can make their businesses more efficient, competitive and profitable. In his six years with TEAM, Ryan has worked alongside many of the world’s leading security firms and has developed a specialized understanding of the unique challenges faced by the industry.

 

HOW TO ATTRACT YOUR COMPANY’S IDEAL CANDIDATE

Anne Laguzza, The Works Consulting, CALSAGA Network Partner

The job market continues to be in favor of job seekers with many security companies citing frustrations over attracting qualified candidates.

A common problem we hear is that security companies will receive a lot of resumes but few are qualified for the role.

If this is happening to you, it is time to review your hiring process from start to finish and find the gaps in your process:

  1. Job Postings

Well-written and well-placed job postings are the key to attracting the right candidates from the start. If you’re receiving lots of resumes but none are qualified for your open position, it’s time to assess. Ensure your job posting is engaging and well-written. Job postings are excellent marketing for your company. To attract top talent, don’t just list off job responsibilities, instead highlight what makes your company different and why people like working there. Applicants are looking for work places that they will enjoy – be sure to include information that will make them want to apply. There are many job posting sites available online, but not all will help you connect with the right candidates. Make sure that you’re utilizing recruiting websites that list similar security jobs in your area. You want to be well-positioned where your future employees are looking for jobs.

2. Interview Process

An interviewing process is like baking. You must follow a specific recipe to ensure repeated results. Decide who should be involved in your interview process and why. What are the questions that will be asked to provide you with the most valuable information? Use behavioral interview questions to understand what the applicant’s past experience is that best relates to your open position. Be consistent. Every time you change the “recipe” you run the risk of uncertainty in the outcome. Hiring is one of the most important things you will do as a leader – treat it with the care and attention it deserves.

3. Selection Process

To ensure you’re hiring your company’s ideal candidate every time, you must have a clear understanding of the type of candidate that would work well within your company’s culture. You might find a candidate likable, but are they a good match for the position? We all have great friends that we wouldn’t recommend for a job (I know I do!). They are very likable socially, but in terms of reliability – not so much.  If you don’t carefully review each candidate’s opportunity areas before hiring to ensure that you have the time and ability to train them, you’ll find yourself recruiting for that same position again very soon. Compare the applicants to a list of qualifications and not to each other to make the best selection for your company.

Through a thorough review of the hiring processes and training to everyone involved in the hiring process, you can attract and hire more qualified candidates. This will keep your clients happy, improve morale and decrease performance issues down the road.

Need help improving your hiring process? Contact The Works Consulting by email solutions@theworksconsulting.com or by phone 562.597.4932.

Anne Laguzza is the CEO of The Works Consulting. As a seasoned business executive with human resources management, leadership development, and performance coaching experience, Anne works with clients from a variety of industries to develop better systems, maximize employee productivity, and enable management to focus on business growth.

Prior to founding The Works Consulting in 2001, Anne served as the Regional Human Resources Director for a Fortune 500 distribution company where she led a merger transition team and was responsible for strategic planning, implementing new policies and procedures, workforce restructuring, compensation structures, and integrating the work cultures for over 600 employees.

In addition, Anne was formerly the Human Resources and Training Director for a start-up entertainment company where she organized and implemented a company-wide change management program that involved new company direction and strategic planning. Prior to her work in the entertainment industry, Anne served as the Regional Training Manager for a nationwide retailer where she developed and launched a multi-state training program for human resources managers as part of a corporate expansion project.

Anne earned her Master of Arts degree in Organizational Management from Antioch University, and holds a Bachelor of Arts degree in Psychology from the University of California, Riverside. She is an active member of the Society of Human Resources Management, and is a board member for Harbor Interfaith Services and an advisory board member for Arthritis National Research Foundation. Anne has taught human resources and management courses at Long Beach City College and California State University, Dominguez Hills, and volunteers at non-profit organizations teaching interviewing skills to adults seeking re-entry into the workforce.

Social Media Links:

Instagram – https://www.instagram.com/annelaguzza/

Facebook – https://www.facebook.com/TheWorksHR/

LinkedIn – https://www.linkedin.com/in/annelaguzza/

UNPACKING THE PURPOSE OF A SECURITY OPERATIONS CENTER FOR PHYSICAL SECURITY PROVIDERS

Ashlee Cervantes Thomas, Guardian Secure Solutions LLC, CALSAGA Associate Member

A Security Operations Center, also known as an SOC, is a facility with a team of security professionals who track, respond, and analyze the ongoing operations of an organization. An SOC can handle a plethora of responsibilities but stripped down, an SOC is your company’s first line of defense. There are various different types of SOCs and some companies may even go the route of building an in-house Dispatch Center. An in-house Dispatch Center can be defined as a dedicated staff and equipment solely for their own incoming and outgoing operations.

In this article, we break down commonly asked questions regarding SOCs vs Dispatch Centers, building your own dispatch center, and identifying which option is best for your company.

When looking into building your own dispatch center, consider these 5 key areas:

1. Assess Your Call Volume

A smaller company may receive 10 calls per day whereas a larger company may receive 10+ calls per hour. Call volume in relation to needing an SOC will vary depending on the needs of your company.

2. Consider Existing Resources

Consider utilizing existing staff to create a patchwork dispatch center. While using this tactic may be cost effective, it is important to remember that these individuals most likely already work long, intense hours where burnout may occur. Additionally, as security professionals, we can recognize that security officers, patrol officers, and even managers may not be best equipped to handle all incoming and outgoing company operations. Guard Card Training is much different than Dispatch Training!1. Conduct a Tech Assessment

Is your company already equipped with additional phones, computers, monitors, radios, etc? These items can be costly and while basic dispatching can be completed with just a phone or radio, enhancing your company will require more technology. If you are expecting your employees to utilize their own personal devices, remember equipment allowance costs will be added to overall payroll costs.

3. Client Inventory

We think this may be one of the most important considerations. It is vital to the success of any company that you know who is routinely contacting you. Do you receive mostly service requests? Do you receive mostly employee calls vs client calls? All these aspects are important to consider not only when deciding whether an SOC or dispatch center is best for you, but also when training your dispatchers!

4. Conduct a Budget Analysis

And most importantly, conduct a budget analysis! Can you afford to build an in-house dispatch center? Would outsourcing be more cost effective? At the hourly rate of $22 per hour for 24/7 dispatch, you are looking at close to $200,000 per year, on base rate cost alone! Add in additional payroll costs, equipt costs, training costs, supervisor costs, and more and we come to the conclusion that building a full in house dispatch center will be very costly. For most companies, this just isn’t feasible or a smart business decision.

As a security operations center, we often see clients who at company launch handle all their incoming and outgoing operations. This means supervisors and even owners are up at all hours of the day working tirelessly, however during this time energy and spirits are often high! As a company grows and activity level increases, we see time and time again where this leads to burnout. Your supervisors and YOU can only maintain working endless hours for so long.

While many smaller companies may believe handling their own dispatch services is easiest, we have come to recognize that while these processes may work at first, your company will quickly outgrow them. This is where a Security Operations Center can step in and alleviate your time, money, and improve efficiency. At first glance, we understand that starting services with a Security Operations Center may appear as an additional cost, however after reviewing the 5 key areas we just discussed, you can see how this will actually add value to your company and relieve you so you can focus on what you do best, running and growing your company.

A Security Operations Center is a specialized facility in charge of handling all incoming communications and security issues. A Security Operations Center will combine various different areas of security, such as Dispatching, Incident Tracking, and

More. A sole Dispatch Center can handle security responsibilities, however Dispatch Centers are typically for one company with one set of specific protocols whereas a Security Operations Center provides more flexibility to provide a larger benefit to multiple companies. A Security Operations Center is a shared center between multiple companies, which is why we see both cost savings and enhanced service offerings when utilizing these services.

To learn more about our Security Operations Center and how we can serve you, visit our website guardiansecuresolutions.com.

Ashlee Cervantes Thomas is a seasoned security executive who is passionate about all things related to Security Solutions, Physical Risk Mitigation and Management. Ashlee holds her Masters in Business Administration from University of California, Davis. In her 15+ year career she has overseen hundreds of security professionals who specialize in Armed Security and Executive Protection. Ashlee is based in Northern California where she serves as the Chief Executive Officer of Guardian Protection Force Inc., as well as the Founder of Guardian Secure Solutions LLC – a full service technology centered Security Operations Center (SOC). Ashlee has built a legacy established by prioritizing core values each day to deliver the highest caliber security service to our communities and customers.

NAVIGATING THE HARD INSURANCE MARKET: STRATEGIES FOR PRIVATE SECURITY FIRMS

Tory Brownyard, Brownyard Group

As insurers look to reduce risk and losses, businesses in areas that are deemed high-risk, such as those in private security, face fewer options and higher rates. Yet while higher premiums are difficult for security firms to navigate, they pale in comparison to the enormous financial and reputational damage inadequate coverage may cause. For private security firms, there is no end in sight as these conditions, which started around 2019 and were accompanied by higher premiums and stricter underwriting, are expected to continue well into 2025.

Fortunately, there are strategies that security firm owners and operators can use to ensure their firm remains appealing for insurance companies by understanding their risk exposures and addressing them.

Why so hard?

Past hard markets have lasted three years on average, making the current hard market unusual. The hard market has persisted for as long as it has for multiple reasons, including two that impact private security firms the most.

First, firms face increasing risks—and premiums—due to the rise of so-called “nuclear verdicts,” court decisions that exceed $10 million in damages for the claimant. In 2023, nuclear verdicts cost the insurance industry a staggering $14.5 billion, and security firms are not immune.

Second, a continued increase in active shooter claims nationwide severely impacts security firms’ risk profiles. From 2019 to 2023, active shooter events increased by 89% over the prior five-year period, according to FBI data. These events bring unique challenges to firms, because if a firm’s officers are within proximity of an active shooter, a lawsuit for failure to provide adequate security will surely follow. Such lawsuits will almost always consume a firm’s total liability policy limits, which is why some insurers may deny coverage to certain firms.

Pitfalls to Steer Clear Of

Given the economic pressures of the hard market, private security firms sometimes look to cut costs by shopping for policies on non-admitted markets. Doing so, however, can create far more problems than it solves.

Non-admitted insurers are not state regulated and do not pay into the state guarantee fund. Sometimes, firms may be forced to work with non-admitted insurers if they cover only high-risk clients, such as bars or fast-food restaurants. However, non-admitted insurers do not offer protection for firms in the event of an insurance bankruptcy, which is a major downside.

Additionally, some non-admitted insurers provide limited coverage, which puts a firm’s professionals at risk and potentially impacts their profitability, too.

Assault and battery liability provides a good example for how non-admitted insurance can impact a firm’s profitability and put professionals at risk. Assault and battery liability protects firms and their employees from claims that may arise regarding the use of physical force. The industry standard is for companies to require their security firms to carry at least $1 million in assault and battery coverage as part of their general liability insurance. If a firm contracts with a non-admitted insurer and carries a sub-limit below $1 million, it will lose existing contracts and struggle to compete for new business from low-risk (and highly desired) clients in the future. Even worse, if a non-admitted insurer eliminates assault and battery coverage altogether, a firm and its employees are unprotected from related lawsuits entirely.

 How to improve your firm’s insurability

While the hard market may be out of any owner or operator’s control, there are ways to enhance your firm’s appeal to insurers—without moving to the non-admitted market with carriers offering inadequate coverage.

Make a strong impression.
When reviewing a business for insurability, many organizations rely heavily on loss experience. A clean loss run spanning at least 4 years years can make a favorable impression. However, repeated claims in specific areas can raise red flags, likely resulting in a declination. For example:

  • A loss record showing a history of drowsy driving claims could indicate problems with long work hours or poor training and supervision.
  • A firm with multiple reports of fights between security officers and customers could raise concerns about substandard employee screening processes.

Choose your firm’s clients wisely.

A firm with lower-risk clients, such as those that secure Class A or high-end office buildings, technology campuses, estates or government entities, could be more attractive to insurers. Those that cater to higher-risk clients—such as shopping malls, arenas and other special event spaces where large amounts of people gather—will likely be less attractive.

Limit your liability contractually.

Firms that have partnered with an attorney to develop their own contracts with specific language limiting their liability will be more attractive to insurers than firms that accept the terms and conditions spelled out in their clients’ contracts or use generic contract language.

Train and hire responsibly.

The good news for California security firms is that the state already has some of the most stringent requirements in the nation when it comes to security officer screening, training and supervision. Insurers will prioritize partnering with firms that meet those strict standards. Firms that exceed California requirements are likely to make an even better impression on insurers.

Retain your security professionals.

Firms with high turnover rates are a red flag to insurers, as it calls into question the firm’s ability to cultivate a stable workforce. Additionally, insurers will be more likely to cover firms that offer their security professionals average or above-average salaries versus those who pay minimum wage.

Don’t forget about auto.

While much of the advice above is geared toward general liability insurance, commercial auto is another pain point many private security firms share. Insurers will prioritize partnering with firms that follow a few simple best practices and maintain clean loss records. In particular, insurers will look for written driver safety policies, thorough training for new hires, refresher training for existing staff, and the use of on-board telematics, video cameras and other proven fleet management safety technologies.

Keep your firm insured

Do not let the challenges of a hard insurance market keep you from getting the coverage your firm—and its officers—need to stay safe. By maintaining a clean loss record, avoiding the pitfalls of non-admitted insurers and adopting proven third-party risk transfer strategies, firms can take their own steps to protect their businesses to keep their premium increases to a minimum regardless of market conditions.

Tory Brownyard is president of Brownyard Group (www.brownyard.com), a program administrator that pioneered liability insurance for security officer firms more than 70 years ago.

USING ARTIFICIAL INTELLIGENCE IN THE SECURITY INDUSTRY

Dr. Robert Coop, TEAM Software by WorkWave, CALSAGA Network Partner

Artificial intelligence (AI) is seemingly everywhere. Across industry events, conferences, expos and meetings, AI is the topic that everyone wants to hear more about. But the reality is that AI adoption in security isn’t uniform – some areas are seeing rapid advancement while others are just beginning to transform.

The security industry’s embrace of AI reflects this mixed landscape. While technologies like computer vision have become sophisticated and widely adopted for surveillance and monitoring, other applications like back-office administration and customer support are still in their early stages. Business owners are eager to understand how these various AI technologies can be embedded into their daily workflows to make operations leaner, faster and more efficient.

Benefits for security companies

This early in development, the benefits of AI are endless. As a starting point, though, security companies can expect three initial benefits after implementation.

The first is improved efficiency, as AI automates routine tasks and optimizes resource allocation, saving time and reducing costs. Because AI reduces manual processes and human error behind the scenes, it will also be able to start improving efficiency in the field. For example, AI can now determine optimal guard tours and staff deployment patterns. This helps to ensure you’re staying ahead of contract needs and preserving resources (and pay) based on actual needs for contract fulfillment.

Secondly, security professionals can expect a better customer experience. Some of the resistance to AI comes with a fear that these people-centered services will begin to lose human connection.  However, AI is a tool that enhances rather than replaces personal service, ultimately improving customer experiences and leading to greater customer retention rates. The emergence of generative AI has opened new possibilities for customer interaction, from intelligent 24/7 chatbots to automated yet personalized reporting systems. These tools can help solve customer issues faster and build long-term loyalty by providing consistent, round-the-clock support.

Third, contractors can expect more sophisticated data-driven decision making. Modern AI systems can analyze vast amounts of security data. This information can then be used to identify patterns, predict trends and provide data-driven steps for your company to strategize around and take action on. Especially as AI becomes an in-built element of workforce management software like TEAM Software offers, this type of information will be built around your own unique customers and prospects, offering in-platform insights for even greater value.

Support for guards

In any business, employee productivity and quality of work improves when people can act independently with their company’s support. AI serves as a force multiplier, giving your employees a hub of information that helps them better serve customers and make informed decisions from the field. By providing real-time data, insights, and contextual information, AI empowers frontline workers to resolve security incidents faster and more effectively.

AI can provide customer insights, summarize past interactions and suggest problem solutions in real time, enabling them to build rapport, explain issues clearly and provide exceptional service. Additionally, AI-powered knowledge management systems make it easy for your frontline staff to access expert advice, guidance and training materials in the field, allowing them to resolve security incidents faster.

AI also provides frontline workers with real-time data and insights, recommendations and contextual information, empowering them to make better-informed decisions and solve problems more effectively on the job.

Efficiency and customer satisfaction

By harnessing AI, companies will be able to streamline processes and build stronger relationships through more responsive and tailored service delivery. This improvement in operational efficiency directly translates to better customer responsiveness and satisfaction.  AI will plan routes and optimize the schedules of front-line employees, reducing travel time and enabling faster service delivery, which improves both operational efficiency and customer responsiveness.

In terms of customer satisfaction, AI analyzes preferences, service history and feedback to tailor service recommendations and communication, delivering a more personalized experience that boosts satisfaction and loyalty. Additionally, AI continuously analyzes service performance data to identify bottlenecks, inefficiencies and improvement opportunities, allowing companies to optimize operations and elevate service quality over time.

AI-powered tools can process large volumes of technical manuals, prior support cases and other service bulletins and provide a conversational interface able to answer technical questions quickly. For security companies considering AI implementation, the path forward is clear: embrace the technology thoughtfully, prioritize practical applications that deliver immediate value and maintain a balance between automation and human touch.  The only part of the equation that will remain unchanged by AI is the why behind what commercial security companies do: to help keep the world clean, safe and secure.

Dr. Robert Coop leads AI and machine learning initiatives, driving innovation in product development and operations through generative AI, ChatGPT and other advanced technologies. With over a decade of experience in data science and a Ph.D. in Computer Engineering with a focus on Machine Learning from the University of Tennessee, Coop has developed and executed strategic roadmaps in a diverse set of scenarios including the manufacturing industry, healthcare industry and professional services.