DC Business Insurance 2

Question 1

A DC business has employment practices liability insurance (EPLI). Which claim would this policy cover?

Accepted Answer

An employee alleging wrongful termination or workplace discrimination

Answer

A customer slipping on a wet floor in the store

Answer

A contractor's injury at the business premises

Answer

Property damage caused by an employee's vehicle

Question 2

Which DC business insurance provision ensures the insurer pays defense costs in addition to (not within) the policy limits?

Accepted Answer

Defense outside the limits (supplementary payments)

Answer

Defense inside the limits

Answer

Self-insured retention

Answer

Duty to defend provision

Question 3

A DC general contractor requires all subcontractors to add them as an 'additional insured' on their CGL policies. What does this provide?

Accepted Answer

The general contractor has coverage under the subcontractor's policy for claims arising from the subcontractor's work

Answer

The subcontractor's policy limits are doubled for the project

Answer

The general contractor's own policy automatically extends to the subcontractor

Answer

The subcontractor is exempt from workers' compensation requirements

Question 4

What is a 'waiver of subrogation' endorsement in a DC commercial policy?

Accepted Answer

The insurer agrees not to seek recovery from a specified third party (e.g., a general contractor) after paying a claim

Answer

The insurer waives the right to recover from the named insured for their own negligence

Answer

The insured waives the right to file a claim against their own insurer

Answer

The endorsement waives the premium payment for the first year

Question 5

A DC restaurant owner's liquor liability coverage would respond to which of the following claims?

Accepted Answer

A customer suing the restaurant for serving alcohol to a visibly intoxicated patron who then caused a car accident

Answer

A kitchen fire caused by a gas leak

Answer

A slip-and-fall by a customer in the bathroom

Answer

A food poisoning claim by a customer

Question 6

Which of the following best describes 'occurrence' versus 'claims-made' CGL coverage for DC businesses?

Accepted Answer

Occurrence covers claims for incidents that happen during the policy period regardless of when the claim is filed; claims-made covers claims filed during the policy period for incidents during the retro date or later

Answer

Occurrence coverage applies to current events; claims-made applies to past events

Answer

Claims-made is always broader than occurrence coverage

Answer

There is no meaningful difference for DC purposes