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What consequence can a PPO face for not having Workers Compensation insurance?

  1. Fine and legal action

  2. Only a fine

  3. No consequences

  4. Termination of business

The correct answer is: Fine and legal action

A Private Patrol Operator (PPO) can face significant consequences for not having Workers Compensation insurance, including fines and legal action. Workers Compensation insurance is essential because it provides coverage for employees who might be injured in the course of their work. If a PPO lacks this insurance, they are in violation of state laws that mandate such coverage for businesses with employees. The fines can be substantial, and in addition, the PPO may face legal action from injured employees seeking compensation for medical expenses, lost wages, and other damages. Furthermore, regulatory agencies may impose additional penalties or take legal steps to enforce compliance, which can further affect the PPO's ability to operate. By ensuring proper Workers Compensation coverage, a PPO not only protects their employees but also safeguards the business from potential legal and financial troubles that arise from non-compliance with insurance regulations. This understanding underscores the importance of maintaining adequate insurance as part of operating within the legal framework governing private security operations.