CCS Business Insurance & Liability 2

Question 1

A chimney sweep's customer files a claim alleging that soot contamination from an incomplete cleaning damaged their furniture. Which coverage would respond to this claim?

Accepted Answer

General liability insurance

Answer

General liability insurance covers third-party property damage claims, including damage to a customer's belongings caused by the sweep's operations.

Question 2

What is a 'certificate of insurance' and why might a chimney sweep need to provide one?

Accepted Answer

A summary of coverage provided to clients or contractors as proof of insurance

Answer

A certificate of insurance is a document issued by an insurer that summarizes the policyholder's coverage, often required by clients or general contractors before work begins.

Question 3

Which type of liability policy covers claims made during the policy period regardless of when the incident occurred?

Accepted Answer

Claims-made policy

Answer

A claims-made policy covers claims filed during the active policy period, even if the triggering event happened before the policy started (subject to retroactive date).

Question 4

A chimney sweep hires a part-time assistant. What is the primary reason this change requires immediate notification to the insurer?

Accepted Answer

Adding employees may affect workers' compensation premiums and general liability exposure

Answer

Adding employees changes the business's exposure profile, potentially affecting workers' compensation requirements and general liability premiums.

Question 5

What does 'subrogation' mean in the context of business insurance?

Accepted Answer

The insurer's right to recover costs from a negligent third party after paying a claim

Answer

Subrogation allows an insurer that has paid a claim to pursue the responsible third party to recover the amount paid on behalf of the insured.

(CCS) Certified Chimney Sweeper Practice Test

(CCS) Certified Chimney Sweeper Practice Test

CCS Business Insurance & Liability 2