Under California BPC §7583.39, every PPO must maintain financial responsibility through:
Explanation
BPC §7583.39 requires every licensed PPO to maintain a commercial general liability insurance policy with minimum coverage of $1,000,000 per occurrence and $2,000,000 in the aggregate, covering bodily injury, personal injury, and property damage. Proof of coverage must be filed with BSIS, and the policy must include a 30-day notice-of-cancellation provision. Lapse in coverage is grounds for automatic license suspension. This reflects the legislature's recognition that security work creates meaningful third-party risk and ensures injured patrons have a realistic path to recovery. A small bond (a), personal savings (b), and trade association membership (c) are not statutory substitutes.
Law Reference: Cal. Business & Professions Code §7583.39Practice all 200 questions free — no signup required.
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