What is required from a licensee when employing registered or commissioned employees?

Study for the Texas DPS PSB Qualified Manager Exam. Practice with flashcards and multiple choice questions. Each question includes hints and explanations. Prepare for your exam confidently!

The correct choice is that a licensee must carry commercial liability insurance when employing registered or commissioned employees. This requirement serves several important functions in the context of the private security industry. Firstly, commercial liability insurance protects the licensee and their business from financial loss that may arise from claims or lawsuits due to incidents that occur during the course of providing security services. This could include bodily injury, property damage, or other liabilities that could arise from the actions of an employee while performing their duties.

Having commercial liability insurance is crucial because it ensures that there is a financial safety net both for the business itself and for clients who may be impacted by the services provided. It enhances professionalism in the industry by demonstrating that the employer is taking responsibility for potential risks associated with their operations.

In contrast, while training programs, background checks, and salaries above the state minimum are important aspects of managing registered or commissioned employees, they are not specifically mandated requirements that licensees must fulfill according to Texas DPS guidelines for the private security sector. Thus, focusing on liability insurance highlights the necessary compliance aspect that protects both the employees and the business.

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