CRM Insurance and Financial Risk Flashcards
6 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRM Insurance and Financial Risk flashcards as text
What is the primary purpose of commercial property insurance for a business?
Answer: To cover physical assets against loss or damage
Commercial property insurance protects a business's physical assets, including buildings and equipment, from covered perils.
What does 'subrogation' mean in insurance?
Answer: The insurer's right to pursue a third party that caused an insurance loss
Subrogation allows an insurer who has paid a claim to pursue recovery from the responsible third party.
Which liability coverage protects a business against claims arising from its products after they leave the premises?
Answer: Products liability
Products liability coverage protects manufacturers and sellers against claims arising from harm caused by their products.
What is a 'deductible' in an insurance policy?
Answer: The amount the insured must pay before insurance coverage applies
A deductible is the portion of a loss that the insured must pay out-of-pocket before the insurance policy begins paying.
Workers' compensation insurance provides coverage for:
Answer: Employee injuries or illnesses arising from employment
Workers' compensation covers medical expenses and lost wages for employees injured or made ill in the course of their employment.
What is a commercial 'umbrella policy'?
Answer: Excess liability coverage that extends limits beyond primary policies
A commercial umbrella policy provides additional liability limits above and beyond primary insurance policies, covering catastrophic losses.