What are the requirements for maintaining liability insurance coverage for license holders?

Maintaining liability insurance coverage is a crucial requirement for license holders in the security industry in Ohio. The correct choice highlights that coverage must be verified, and a minimum level of coverage is specified. This requirement ensures that license holders are adequately protected against potential claims resulting from their professional activities. By verifying coverage, regulatory bodies can ensure that all license holders maintain a certain standard of protection, which not only safeguards the business but also protects clients and the public.

Minimum coverage amounts are set to create a baseline for liability protection, ensuring that sufficient resources are available to handle claims that may arise. This standardization is important for maintaining the integrity of the industry and providing peace of mind to clients and stakeholders.

In contrast, maintaining coverage with minimal premiums does not guarantee adequate protection, as lower-cost policies may not provide sufficient coverage. Limiting coverage to certain types of incidents may leave significant gaps, exposing license holders to risks. Allowing coverage to lapse without immediate notification undermines the purpose of having liability insurance, which is to provide continuous protection against claims. Thus, the necessity for verified coverage and specified minimums is central to ensuring that license holders operate responsibly and with proper safeguards in place.