CCS Business Insurance & Liability 3

Question 1

A chimney sweep's van is used to transport equipment to job sites. Which policy is required to cover an accident while driving to a customer's home?

Accepted Answer

Commercial auto insurance

Answer

Commercial auto insurance is required for vehicles used for business purposes; a personal auto policy typically excludes coverage during business use.

Question 2

What is an 'additional insured' endorsement on a liability policy?

Accepted Answer

A provision extending liability coverage to another party, such as a property management company

Answer

An additional insured endorsement extends the named insured's liability coverage to another specified party, often required by property managers or general contractors.

Question 3

If a chimney sweep causes a house fire due to negligent work, and the homeowner's insurance pays the claim, what legal doctrine may allow the homeowner's insurer to sue the sweep?

Accepted Answer

Subrogation

Answer

Through subrogation, the homeowner's insurer steps into the homeowner's shoes and can sue the negligent chimney sweep to recover the amount paid on the claim.

Question 4

A chimney sweep uses a drone to inspect tall chimneys. What coverage gap might exist in a standard chimney sweep liability policy?

Accepted Answer

Standard policies may not cover drone-related liability; a separate unmanned aircraft endorsement may be needed

Answer

Standard general liability policies often exclude or have limited coverage for unmanned aircraft (drones), requiring a specific endorsement or separate policy.

Question 5

What is the purpose of a 'waiver of subrogation' clause that a property owner might ask a chimney sweep to sign?

Accepted Answer

It prevents the sweep's insurer from suing the property owner if the insurer pays a claim on the sweep's behalf

Answer

A waiver of subrogation prevents the sweep's insurer from pursuing the property owner in a recovery action, protecting the owner from being sued by the sweep's insurance company.

(CCS) Certified Chimney Sweeper Practice Test

(CCS) Certified Chimney Sweeper Practice Test

CCS Business Insurance & Liability 3