Licensing and Regulatory Affairs
Security guard agency failed to maintain statutory surety bond requirements
Media Contact: LARA Communications 517-335-LARA (5272)
July 3, 2019 – The Dept. of Licensing and Regulatory Affairs (LARA), Corporations, Securities & Commercial Licensing Bureau (CSCL) issued a formal complaint against Faithful Patrol Services LLC, a security guard agency in Detroit, and summarily suspended its private investigator license 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 summary suspension was effective June 24, 2019.
“Providers of security guard 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 guard agency’s license from the State of Michigan before using its services.”
Travelers Casualty and Surety Company of America notified CSCL that Faithful Patrol Services LLC’s surety bond was cancelled effective November 21, 2018. All of CSCL’s attempts to contact Faithful Patrol Services LLC to request proof of reinstatement of the bond, a replacement surety bond, or a certificate of liability insurance, as required by the Act, were unsuccessful. Faithful Patrol Services LLC continued to provide services regulated by the Act without a valid bond or policy of insurance on file with CSCL.
Under the Order of Summary Suspension, Faithful Patrol Services LLC must not engage in activities requiring a license under the Act while its license is suspended or it faces the possibility of a criminal referral to the appropriate law enforcement agency for a felony violation punishable by imprisonment for not more than 4 years or a fine of not more than $1,000.00, 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 arising out of the operation of the licensed activity.