What is the minimum insurance that must be carried by a security company with one armed guard?

The correct minimum insurance requirement for a security company employing at least one armed guard is one million dollars. This stipulation is in place to ensure that security companies are adequately protected against potential liabilities that may arise from their operations.

The rationale for this requirement lies in the nature of security services. When a company provides armed guards, it assumes significant responsibility, including the potential for property damage, injury, or other liabilities that could result from the actions of its guards. Having a million dollars in insurance coverage helps to safeguard both the company and the public by ensuring that there are sufficient funds available to cover claims that may arise from incidents involving armed security personnel.

This coverage requirement reflects a balance between encouraging security firms to maintain high standards in their operations while also ensuring that potential claimants have access to compensation in the event of an adverse incident.