Kentucky Private Investigator Practice Test

Which of the following must be reported to the board?

1. Change in insurance coverage

2. New office location

3. Change of ownership

4. Change in legal counsel

The correct answer is: Change in insurance coverage

The correct answer regarding what must be reported to the board is the change in insurance coverage. Reporting changes in insurance coverage is essential because it directly relates to the compliance and operational integrity of a private investigation business. Insurance is a critical component in risk management, protecting both the business and its clients. If a private investigator's coverage changes, it could expose the business and clients to liability. Therefore, the board needs to be informed to ensure that the investigator continues to meet all regulatory and safety requirements. In contrast, while changes in office location and ownership may involve notifying certain entities or fulfilling specific legal obligations, they do not have the same immediate impact on the insurance liabilities and overall risk exposure of the business. Similarly, changes in legal counsel are pertinent but primarily affect the internal legal strategy rather than the operational compliance required by the board.