What is the consequence of having no insurance when unreported injuries occur?

When a security service provider operates without the required insurance, particularly when unreported injuries occur, one significant consequence can be the potential revocation of their license. The California Private Security Services Act mandates that security companies maintain appropriate levels of insurance to protect against claims for injuries or damages arising during the course of their operations. This requirement is in place to ensure both the safety of the public and the financial stability of the security provider.

If injuries are reported and the company lacks insurance coverage, it can lead to complications with liability claims, and regulatory authorities may view this as a severe violation of the standards set forth in the act. Such a breach can result in actions taken against the company's license, including possible revocation. Therefore, maintaining adequate insurance is not just a best practice, but a legal necessity to ensure continued operation within this regulated industry.