With the R word—that’s recession—being floated more these days than in recent years, planners may find themselves faced with some incredible shrinking budgets. That means trying to get more with less (even more than usual, that is), and security often seems like an easy place to trim expenses. But how many planners really know what affects the cost of securing an event? We talked to security professionals throughout the industry to identify the elements of an event that determine the price of security—and what you should know when considering how much you should pay.
The Venue: The specifics of the location can impact costs in a variety of ways. With more entrances and exits comes the need for more staff to guard those access points. Likewise, a space that’s broken up will dictate the need for more bodies. “If you have a large venue with more than one room and [a firm is] suggesting one person, that’s ineffective,” says Gabrielle Malman, general manager of TBA Global Securities in Washington, D.C.
Additionally, if a venue does not have a certificate of occupancy or is being used in a way that is not covered by its certificate of occupancy, such as a warehouse space hosting a party, a Temporary Public Assembly permit (as it’s called in New York City) or a similar document that specifies where fire guards must be stationed may be required. In some cases, this may not affect security costs. “My licensed event officers are also licensed FDNY fire guards, so [planners] don’t have to pay for two people for that post,” says Barry Meyerson, president of New York-based Meyerson Associates Inc. However, a fire guard may be needed for an area that wouldn’t ordinarily be covered by security, such as in a back stairwell, in which case the expense is unavoidable.
Type of Event and Guests: These variables can significantly impact the cost of security, in some ways even more than the simple number of guests, as they play a big role in determining how much of a security presence is needed. “If it’s a very young crowd, with an open bar, a live DJ, and it’s like a party atmosphere, that’s definitely a higher-risk situation,” says John Smaragdakis, president of GSS Security Services Inc. in New York.
Stanley Czwakiel, president of Cambridge Security in New York, cites the difference between two recent events that hired his firm: the family-oriented PSEG Global Green Expo, held during the day in Liberty State Park in Jersey City, New Jersey, and the Breeder’s Cup at Monmouth Park Racetrack in Oceanport, New Jersey, where his staff escorted horse-owning sheiks. “If it has to do with sports, it’s such a different crowd versus someone visiting a booth at a family-oriented event,” he says. At the expo, Czwakiel supplemented regular security personnel with a handful of corrections officers; at the Breeder’s Cup, he employed off-duty police.
Likewise, a sedate cocktail party from 4 to 6 p.m. has smaller security needs and costs than a party from 10 p.m. to 4 a.m. “An after-party for a rock band will differ greatly in security needs over a nonprofit auction. Your security budget can fall between several hundred dollars and several thousand,” says Gemma Beristain, C.O.O. of Los Angeles firm Picore Worldwide.
“High-profile award shows, sporting event championships, and in-demand concerts require more representation and expertise,” Beristain continues. “Mega-Hollywood shows’ security programs require six to nine months of preplanning, with requirements of security presence pre-, during, and post event. Budgets can exceed $1 million.”
Qualifications of Personnel: The difference in the hourly rate of lower-level guards, off-duty or retired police officers, and specialists in executive or V.I.P. protection can be significant. The security firms we spoke to offered rates ranging from $12 to $25 an hour for basic event security staff, although many were quick to add that with a lower price may come less experienced people. Officers with police department, military, or executive-protection training can command significantly more.
“There’s a drastic increase in cost with executive protection,” says Smaragdakis. “It can be a 50 to 75 percent increase, from $50 an hour to sky’s the limit.”
Insurance: Technically, this expense is part of a firm’s overhead, but it’s a significant expenditure, with security-specific policies (including disability insurance, worker’s compensation, and general liability) covering damages into the several millions. “It’s well into the five figures for [proper] insurance,” Meyerson says.
New York State requires licensed security companies to have comprehensive general liability coverage in the minimum amount of $100,000 per occurrence and $300,000 combined. “[That is] ridiculously low for security. [The state’s required coverage] is similar to getting the minimum on car insurance … general liability is a slip and fall,” says Meyerson, whose firm holds a $6 million per occurrence, and $10 million combined policy.
Noting the current litigious environment, Smaragdakis asks, “What’s a $100,000 policy going to do for you? The last thing you want to find out is that your security company is not licensed and not insured [properly].”
Permit Acquisition Fee: This cost can vary wildly, and it is influenced by factors such as the location and date of an event and what the permit is for. Examples of elements requiring a permit from the city or county include the construction of tents, the use of a sidewalk, block closures, and establishing drop-off or layover traffic lanes. Basically: “anytime you work on any city street,” says Mike Ramirez, managing director of GSS. “The fee is determined by the mayor’s office, and it depends on what is going on in the city … If you’re going to do an event in a high-volume place like Penn Station or Wall Street, the cost will be drastically increased.”
GSS offered estimates of $300 and up for the blocking off of a curbside lane for a small event and $7,000 to $12,000 for permits for larger events in New York City. Interested in holding an event on Times Square’s Military Island? Expect to pay about $25,000 for the permit.
Background Checks: Similar to insurance costs, background checks won’t likely show up on a security firm’s bill. However, if you receive a bid so low it seems too good to be true, it might be. Background checks can run up to $350 per staffer. Reputable firms will not try to duck this expenditure. “Guards themselves can be a threat,” says Dr. Dana Picore, owner of Picore Worldwide. “You want to make sure they don’t have a record.” Meyerson points out that someone may have a security license, but that doesn’t mean they don’t have a criminal record. And you don’t want someone who’s been arrested for theft keeping watch over a room of expensive gift bags, do you?
Potential Threats: The good news is that a standard threat assessment (a walk-through of the venue and a review of any potential threats facing an event) is rarely a line item that appears on planner’s bills. More extensive assessments, for large, multiday events involving V.I.P.s, such as movie premieres or award shows, however, will increase security costs.
Possible protests can also affect the budget. “If it’s a Free Tibet event [for example], you’re definitely going to want to secure the main perimeter,” Malman says. Of course, that means more bodies. GSS recommends using staff specially trained in crowd control and threat issues (at a rate of $30 and up) placed at least 100 feet apart.
Aaron B. Johnson, president of San Diego-based firm Johnson & Associates, has sometimes installed standard guards in several locations and augmented that staff with two or three (higher-compensated) V.I.P. protection officers. “The perimeter is your first line of defense for any event, and you definitely do not want to take a chance with a college kid working [there] who [could be] enticed by a guest offering them money for access into the event,” he says.
Screening Technology: Generally, using technology such as screening wands is not a significant expense; many firms have these devices in house. However, if for some reason an event requires walk-through machines or magnometers, it can potentially tack on several thousand dollars to a budget. “We have to rent those, and the cost goes up because you need screeners at each location, both male and female, and you need the machines flown in for the event,” says Meyerson. One quote we received for an event with a guest count of 700 to 1,000 recommended the use of four magnometers at $600 apiece, staffed by three officers per machine. And if you want to bring in bomb-sniffing dogs, estimates range from $75 to $195 an hour. “The cost goes up tremendously to have that added perimeter of security,” Meyerson says.
Correction: The original version of this story omitted the full name of Aaron B. Johnson and his security firm.
—Mimi O’Connor
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