State Agencies More Stringent About Insurance Requirements for PI Agencies
NEWPORT BEACH, Calif., March 18, 2015 /PRNewswire/ -- The General Liability insurance policies that are maintained by many security and private investigation agencies will most likely have inadequate coverage in the event of a claim. In an effort to regulate such agencies, some states are taking measures to provide an oversight of such coverage.
In 2014, Assembly Bill 2220 was introduced by the State of California to add Section 7583.39 to the Business and Professions Code relating to private security services. In order to maintain a Private Patrol Operator (PPO) license issued by the Bureau of Security and Investigative Services in the Department of Consumer Affairs; the PPO is now required to have a copy of a qualifying insurance policy on record with the State. In addition, section 7583.40 was amended to increase the liability requirements from $500,000 to $1,000,000.
PPOs may discover the pitfalls of having an inadequate policy once it is time to file a claim. It is important to be sure that you are covered for the $1,000,000 amount both for losses due to bodily injury or death, and for any one loss due to injury or destruction of property. If a policy does not adequately cover all of those areas, the business operator may be presented with a Letter of Denial by its insurance carrier if a claim is made that is outside the language of the policy.
"Reading and fully understanding the details and language of a policy is essential to both compliance and assuring your agency's coverage," said Daryl Tallon, CEO, Cyber Insurance Group. "A small savings on the front end is not worth the risk of potential untold future losses, especially when most insurance costs can be deducted as a business expense at the end of the year."
Cyber Insurance Group offers comprehensive General Liability as well as Errors & Omissions polices which help protect businesses from the pitfalls of being underinsured. For more information, go to ciisca.us or call 877-800-2822.
About Cyber Insurance™ Group
Headquartered in Newport Beach, CA, the Cyber Insurance Group of companies are dedicated to providing all aspects of services related to the insurance industry. Cyber Insurance™ School (CIS) offers an accredited pre-licensing exam preparation curriculum nationwide in order to take the state exam to become an insurance broker or agent. CyberInsuranceSchool.com.
CIIS Investigation Services offers: law enforcement grade and field investigations, electronic background checks, employment screening packages and a variety of civil or criminal investigation services. CIIS agents & investigators have nearly three decades of experience with criminal and civil insurance investigations. In addition, CIIS offers competitive rates, and loyalty point programs to general clients and to national insurance carriers. For more information, go to ciisca.us.
SOURCE Cyber Insurance Group
Share this article