Business Insurance Flashcards

What does 'Commercial General Liability' (CGL) insurance cover for DC businesses?

Answer: Third-party bodily injury and property damage arising from the business's operations, products, or premises

CGL covers the business's legal liability for bodily injury and property damage to third parties from its operations, completed products, and premises.

Which DC business insurance covers employee dishonesty and theft of company property by employees?

Answer: Crime insurance / employee dishonesty bond

Crime insurance (including employee dishonesty bonds or fidelity bonds) covers losses caused by dishonest acts of employees such as theft, embezzlement, or forgery.

What insurance covers a DC law firm for claims arising from its attorneys' professional negligence?

Answer: Errors and omissions (E&O) / professional liability insurance

Professional liability (E&O) insurance covers claims arising from professional negligence, errors, or omissions in the performance of professional services.

Which coverage would a DC tech startup need to cover data breaches and cyber attacks?

Answer: Cyber liability insurance

Cyber liability insurance covers losses from data breaches, cyber attacks, ransomware, and related privacy violations.

A DC restaurant is sued because a customer became ill from a contaminated meal. Which section of the CGL policy would respond?

Answer: Products and completed operations liability

Claims arising from the restaurant's food products cause harm after the product is consumed—this falls under products and completed operations liability.

What is Directors and Officers (D&O) liability insurance designed to cover for a DC non-profit organization?

Answer: Claims against directors and officers for alleged wrongful acts in their management capacity

D&O insurance covers defense costs and damages for claims alleging that directors and officers made wrongful management decisions or breached their fiduciary duties.