What can happen if a PPO uses an employee without workers’ compensation insurance coverage?

If a private patrol operator (PPO) employs someone without the required workers' compensation insurance coverage, this can lead to significant legal and financial repercussions, including fines and the potential for business closure.

Workers' compensation insurance is mandated by California law to protect workers who may be injured on the job, providing them with coverage for medical expenses and lost wages. If a PPO does not have this insurance in place and an employee is injured, the PPO could be held liable for all the costs associated with that injury. This not only exposes the business to costly lawsuits but may also result in hefty fines imposed by regulatory bodies for non-compliance with legal obligations.

Furthermore, ongoing violations can escalate to the point where authorities may decide to suspend or revoke the PPO's license to operate. This can effectively lead to business closure if the operator is unable to meet the state’s requirements regarding employee protection. Therefore, maintaining proper workers’ compensation coverage is crucial for legal compliance, financial protection, and the overall sustainability of a private security business.