Licensing and Regulatory Affairs
Security guard agency failed to maintain statutory insurance or surety bond requirements
Media Contact: LARA Communications 517-335-LARA (5272)
May 29, 2019 – LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) revoked the security guard agency license of Authorized Security Experts, LLC, a security guard agency in Farmington Hills, MI, for failing to maintain either a surety bond or policy of insurance, as required under Michigan’s Private Security Business and Security Alarms Act (Act). The revocation was effective May 14, 2019.
“Providers of security services must operate lawfully, and that includes maintaining the legal requirement of insurance or a surety bond,” said CSCL Director Julia Dale. “Our bureau will take appropriate regulatory actions to protect the health, safety, and welfare of the public. Consumers should always ask to see proof of a security agency’s license from the State of Michigan before using its services.”
Travelers Casualty and Surety Company of America notified CSCL of its intent to cancel Authorized Security Experts, LLC’s surety bond in June 2018. All of CSCL’s attempts to contact Authorized Security Experts, LLC by phone and mail to inquire about the cancellation and if it maintained a surety bond or insurance policy, as required by the Act, were unsuccessful. Authorized Security Experts, LLC continued to provide security services without a valid surety bond or policy of insurance. Further, Authorized Security Experts, LLC failed to file a response to a Formal Complaint, Order of Summary Suspension, or Motion for Summary Disposition filed by CSCL through the Michigan Administrative Hearing System (now known as the Michigan Office of Administrative Hearings and Rules). From these facts, an administrative law judge granted CSCL’s motion for summary disposition and recommended that CSCL’s director adopt his proposed findings of fact and conclusions of law. The Final Order does just that and requires Authorized Security Experts, LLC to surrender its license and identification card to CSCL within 48 hours of notification. The failure to do so renders a person guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500, or both.
To be licensed in the state of Michigan, security guard agencies must maintain either a $25,000 surety bond or policy of insurance: $25,000 for property damages; $100,000 for injury or death of one person, and $200,000 for injuries or deaths of more than one person.