DC Business Insurance

Question 1

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

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

Crime insurance / employee dishonesty bond

Answer

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

Question 3

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

Accepted Answer

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

Answer

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

Question 4

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

Accepted Answer

Cyber liability insurance

Answer

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

Question 5

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

Accepted Answer

Products and completed operations liability

Answer

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

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC Business Insurance