If you are a one-man ACO with no employees and you are not carrying a firearm by law, what insurance are you required to have?

• A. General liability
• B. Workers' compensation
• C. Professional liability
• D. None

Answer: (D)

The important point is that insurance requirements for this license hinge on employment status. In California, workers’ compensation insurance is mandatory only if you have employees. As a sole operator with no employees, you’re not required to carry workers’ compensation. The alarm company operator licensing rules do not mandate general liability or professional liability insurance in this solo, no-employees scenario, and not carrying a firearm removes any firearm-specific insurance requirement. So, there’s no mandated insurance for a one-person operation under these conditions. That said, you may still want liability coverage in practice, especially if you contract with clients or later hire help.