Sample letter from Bureau of Security and Investigative Services-

Sample letter from Bureau of Security and Investigative Services-
Effective January 1, 2015, all licensed private patrol operators must maintain general liability insurance as a condition of licensure. Specifically, you will be required to have a commercial general liability insurance policy that provides minimum limits of one million dollars ($1,000,000) for any one loss or occurrence due to bodily injury, including death, or property damage, or both. This requirement is pursuant to new Business and Professions Code Sections 7583.39 and 7583.40 from the enactment of AB 2220 (Chapter 432, Statutes of 2014). A copy of these new legal requirements is enclosed.

Please provide the Bureau with a Certificate of Liability Insurance from your insurer by January 1, 2015 to demonstrate you have the required insurance. As required by the new law, the Certificate of Liability Insurance must include the following information: (1) your company name, (2) your private patrol operator license number, (3) the insurance policy number, and (4) the dates the coverage of insurance commenced and expires. The Certificate can be submitted to the Bureau by e-mail to Privatesecurityservices@dca.ca.gov, or by U.S. mail addressed to the Bureau of Security and Investigative Services, PO Box 980550 , West Sacramento , CA 95798.

Please note that failure to maintain the required liability insurance coverage, and failure to provide the Bureau proof of that insurance by way of the Certificate of Liability Insurance will result in an automatic suspension of the license pursuant to Business and Professions Code Section 7583.39

It is your responsibility to provide the Bureau with your new Certificate of Liability Insurance when your current insurance policy period expires. Toward this effort, you may wish to check with your insurer to determine if it has a process for automatically providing the Bureau with a Certificate of Liability for your new insurance policy periods. If you elect to have your insurer provide the proof of insurance directly to the Bureau, the timeliness of the submission and sufficiency of the documentation provided is still ultimately your responsibility.

If you have any questions regarding this matter, you may email them to PrivateSecurityServices@dca.ca.gov or contact the Bureau at (800) 952-5210.

Sincerely,

Licensing Unit

Enclosure: Copies of Business and Professions Code sections 7583.39 and 7583.40
Business and Professions Code sections

7583.39.
(a) The bureau shall require, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, that the applicant or licensee file or have on file with the bureau, an insurance policy, as defined in Section 7583.40 .
(b) If a licensee fails to maintain sufficient insurance, as required by this section, or fails to provide proof of the required insurance policy upon request by the bureau, the license shall be automatically suspended by operation of law until the date that the licensee provides proof to the bureau of compliance with the insurance coverage requirement. Prior to an automatic suspension, the bureau shall notify the licensee, in writing, that it has 30 days to provide proof to the bureau of having the required insurance policy or the license shall be automatically suspended.
(c) (1) A Certificate of Liability Insurance issued by an authorized agent or employee of the insurer shall be submitted to the bureau electronically, or in a manner authorized by the bureau, for an insurance policy secured by a licensee in satisfaction of this section.
(2) An insurer issuing a Certificate of Liability Insurance pursuant to paragraph (1) shall report the following information to the bureau for an insurance policy required by this section:
(A) The name of the insured.
(B) The licensee’s license number.
(C) The policy number.
(D) The dates that coverage is scheduled to commence and end.
(E) The cancellation date, if applicable.
SEC. 4.
Section 7583.40 of the Business and Professions Code is amended to read:

7583.40.
“Insurance policy,” as used in this article, means a commercial general liability policy of insurance issued by an insurance company authorized to transact business in this state that provides minimum limits of insurance of one million dollars ($1,000,000) for any one loss or occurrence due to bodily injury, including death, or property damage, or both.