Inputs on Loss Prevention Contract

[josepidal]

I just want to hear your inputs if it is fair for the client to charge any loss of goods to the security company that were incurred due to the negligence of poor reaction its officers?

And also, is it fair that the security company will be accountable for the store unknown stocklosses above clients budget?

Is this a normal practice in the industry.

Thanks,

jP

[Samuel]

I just want to hear your inputs if it is fair for the client to charge any loss of goods to the security company that were incurred due to the negligence of poor reaction its officers?

And also, is it fair that the security company will be accountable for the store unknown stocklosses above clients budget?

Is this a normal practice in the industry.

Thanks,

jP

Maybe you should try www.askasecuritycompany.com

Would you sign a contract just because someone on the internet told you it "sounds good"? :confused:

[Joeyd6]

I just want to hear your inputs if it is fair for the client to charge any loss of goods to the security company that were incurred due to the negligence of poor reaction its officers?

Poor reaction...never.
Negligence....never but I can see it being there. If the security guard is asleep when supposed to be working and crap happens, negligence. But this is a civil issue, not law enforcement.

And also, is it fair that the security company will be accountable for the store unknown stocklosses above clients budget?

No

Is this a normal practice in the industry.

Definately not.

[MyOwnNemesis]

Poor economy + store loss + lawyers = somebody getting the finger pointed at them. Security shows no tangible gains for the company so usually it is security that will be blamed, especially an outsourced operation, it is an easy scapegoat. I would think the the security company would have some savvy lawyers themselves to protect them from such liability, I know that I would.


"Lawyers Gun and Money"!!...God I love that song!:D

[txinvestigator1]

I just want to hear your inputs if it is fair for the client to charge any loss of goods to the security company that were incurred due to the negligence of poor reaction its officers?

Fair means nothing. What matters is what is in the contract between the security contractor and retailer.

Who establishes negligence or "poor reaction" and how are those terms defined? I would not accept a contract where a retailer wanted my company to reimburse for losses. That is what insurance companies are for.

[highwayman]

I just want to hear your inputs if it is fair for the client to charge any loss of goods to the security company that were incurred due to the negligence of poor reaction its officers?

And also, is it fair that the security company will be accountable for the store unknown stocklosses above clients budget?

Is this a normal practice in the industry.

Thanks,

jP

If it's specifically pointed out in a clause in the contract they sign that the security company will be liable for any percentage above the shrink limit then yes, otherwise the security company is not an insurance company, they cannot catch every single thief, leakage is expected and corporations know this.

Don't forget that external theft is not only the cause of a company's shrink, there is also paper shrink, internal/employee theft, inventory errors, vendor theft, accounting errors, etc etc etc

Taking all the above into consideration any serious company who is aware of all those factors should think twice before blaming the security company for stock losses.

Usually in the loss prevention business if you are not "on the ball" you will not last very long.