Insurance Commercial & Business Insurance

Question 1

What does 'general liability' (GL) insurance cover for a business?

Accepted Answer

Third-party claims for bodily injury, property damage, and personal injury caused by the business's operations

Answer

Damage to the business's own property

Answer

Employee injuries on the job

Answer

Directors' and officers' professional mistakes

Question 2

What is 'workers' compensation' insurance and who does it protect?

Accepted Answer

It provides medical and wage-replacement benefits to employees injured during the course of their employment

Answer

It protects customers injured by defective products

Answer

It covers the employer's property against theft by employees

Answer

It protects business owners from shareholder lawsuits

Question 3

What type of insurance covers a business's loss of income after a covered property loss forces it to temporarily close?

Accepted Answer

Business interruption (BI) insurance

Answer

Product liability insurance

Answer

Commercial auto insurance

Answer

Directors and officers insurance

Question 4

What is a 'Business Owner's Policy' (BOP)?

Accepted Answer

A package policy combining commercial property and general liability coverage at a discounted rate for small to mid-sized businesses

Answer

A policy covering only the business owner's personal assets

Answer

A surety bond required to open a business

Answer

A key-person life insurance policy

Question 5

What does 'errors and omissions' (E&O) insurance cover?

Accepted Answer

Claims against a professional for negligent acts, mistakes, or failure to perform professional services

Answer

Physical damage to office equipment

Answer

Employee theft and embezzlement

Answer

Damage caused by natural disasters to business premises

Question 6

What is 'cyber liability' insurance primarily designed to cover?

Accepted Answer

Losses and liabilities arising from data breaches, ransomware attacks, and other cyber incidents

Answer

Physical damage to computer hardware

Answer

Employee use of social media during work hours

Answer

Intellectual property infringement disputes