How is the million-dollar insurance for PPOs employing armed guards structured?

The structure of the million-dollar insurance required for PPOs (private patrol operators) employing armed guards is outlined in a way that specifically addresses the types of risks associated with their operations.

In this case, the insurance is set at $500,000 for bodily injury and $500,000 for property damage, totaling one million dollars. This structure is important because it clearly delineates coverage for both major areas of concern when armed guards are involved in security activities: the potential for bodily harm to individuals and the risk of damage to property.

By having the coverage split in this manner, it ensures that there are sufficient funds to address claims resulting from both types of incidents, providing a balanced approach to the financial protection needed for security operations. This structure reflects an understanding of the varied liabilities that may arise during the performance of security duties where armed personnel are involved.

In contrast, amounts that might be structured differently—such as a higher single occurrence limit or a different division of amounts—would not align with the insurance guidelines set forth for PPOs hiring armed guards. This ensures that specific risks can be adequately covered without risking insufficient funds in either area of potential liability.