The Tribune

By GAYLORD TAYLOR

Operations Manager

AGT Security

Value-Added Tax (VAT)has everyone excited or depressed, depending on who you talk to, and whether they are an accountant or a bartender.

The private security industry is another that has to bill for VAT. This cost, therefore, is passed on to the client and not borne by the company itself. It therefore begs the question: Are you getting quality service with this increased cost?

Another item which is just as important, but overlooked by most companies who employ private security contractors, is insurance. Public liability is a big factor in what services you should employ a private security firm for. I know for a fact that several companies do not have insurance coverage - a dangerous situation to say the least.

The Bahamas has, over the last several years, taken a more Americanised view of the law in that civil prosecutions have increased. Bahamians view suing a company or person as more advantageous than bringing any criminal charges. It is standard in other jurisdictions for you to provide insurance coverage information when seeking to provide your service. In the US, for instance, all security company employees must be qualified for a minimum of the contract’s value, and for the period of contrac,t at time of signing.

Most companies in the Bahamas, when hiring a security company, take this for granted. This is dangerous and can be very costly in the long run. Armoured vehicles, for instance, must have a different type of insurance than merely cash in transit. The syndicate that provides or underwrites this type of coverage in the Bahamas is Lloyds of London, who have very strict procedures on how armoured couriers should operate. They also have set limits on the amount that must be carried, and in some cases a time limit is also prescribed.

An obvious question, then, is whether the company you use is properly insured. This can be answered easily, since you as a client have a right to request that information. This comes back to why the industry, as a whole needs, regulating. This will first ensure that the consumer is getting what they pay for, and then protect them against shoddy business practices. Fnally, this will see the industry maintain a standard that is consistent with best practices worldwide.

With VAT increasing fees, it is only prudent to ask your security service provider to show they are compliant in every way with the services they are providing and billing you for. Most big corporations require these types of documentation, so it is generally the smaller companies at risk. They go on ‘faith’ in a security firm doing what it is supposed to in terms of safeguarding themselves and their clients from any legal ramifications should the unthinkable or unexpected occur.

Well, I live in the Bahamas and am a Bahamian. I believe that I need not say any more about the scruples of my fellow Bahamians. Beware any security company or professional who does not walk you through all the advantages and, more importantly, disadvantages of the security services they are selling.

It is not a good feeling to have lost thousands of dollars because you simply were not informed and made a poor decision. It is like going to your doctor, asking questions and, if they are professional, they should be more than willing to tell you. Each part of the solution should assist both your business and your wallet. There are many choices today in the security field, and a ‘good rule of thumb’ when looking for a provider is whether the managers are competent and have industry-standard training or certification; how long the company has been in business; who their clients are; and their work standard.

Small businesses today cannot afford to waste money, and since security is so important you should ensure that any company getting your security business will benefit you. Remember, bang for the buck. Just as you do not want to pay all the extra expenses that you are now being asked to, do not let a security company charge you for the extra they are not providing.