Commercial General Liability Flashcard

Front

What does Commercial General Liability insurance primarily cover for a small business owner?

Back

Claims for which businesses may become legally liable

Answer explanation

Commercial General Liability insurance primarily covers claims for which businesses may become legally liable, protecting Benjamin from lawsuits related to bodily injury, property damage, and personal injury.

Front

Which of the following is NOT a basic hazard covered by Commercial General Liability insurance for a retail store? Options: Premises and Operations, Products and Completed Operations, Employee Theft, Independent Contractors.

Back

Employee Theft

Answer explanation

Employee Theft is not covered by Commercial General Liability insurance, which typically protects against risks like Premises and Operations, Products and Completed Operations, and liabilities related to Independent Contractors.

Front

What is the basis for the premium Jackson will pay for premises liability insurance for his shopping mall?

Back

Size of the premises and public accessibility

Answer explanation

The premium for premises liability insurance is primarily based on the size of the premises and public accessibility, as larger and more accessible properties pose greater risks for accidents and liabilities.

Front

Coverage form under Commercial General Liability that covers bodily injury and property damage.

Back

Coverage A

Answer explanation

Coverage A under Commercial General Liability covers bodily injury and property damage, protecting Mia if a customer is injured on her property or if she damages someone else's property.

Front

What does Products liability cover when a blender malfunctions and causes bodily injury to a customer?

Back

Bodily injury or property damage caused by a product

Answer explanation

Products liability covers bodily injury or property damage caused by a product, making it applicable in this case where Luna's malfunctioning blender caused injury to a customer.

Front

What is the primary focus of Coverage B under Commercial General Liability?

Back

Personal injury and advertising injury liability

Answer explanation

Coverage B under Commercial General Liability primarily focuses on personal injury and advertising injury liability, protecting against claims of defamation, invasion of privacy, and similar offenses.

Front

Which agreement is considered an insured contract under a Commercial General Liability policy? Options: A contract for lease of premises, A personal loan agreement, A non-disclosure agreement, A sales contract

Back

A contract for lease of premises

Answer explanation

A contract for lease of premises is considered an insured contract under a Commercial General Liability policy, as it typically includes liability coverage for injuries occurring on the leased property.

Front

What is the purpose of Operations liability coverage when a passerby is injured due to ongoing operations at a construction site?

Back

To cover bodily injury or property damage resulting from business operations

Answer explanation

Operations liability coverage is designed to protect against bodily injury or property damage that occurs as a result of business operations, making it applicable in this situation where a passerby is injured.

Front

Occurrence form in Commercial General Liability policy context

Back

A form that covers incidents occurring during the policy period

Answer explanation

The 'Occurrence form' refers to coverage for incidents that occur during the policy period, regardless of when the claim is filed. This ensures Kai is protected for events happening within the policy timeframe.

Front

On what basis will the premium for a Products liability insurance policy primarily be determined for a company that manufactures kitchen appliances?

Back

Gross annual sales

Answer explanation

The premium for products liability insurance is primarily determined by gross annual sales, as it reflects the potential risk and exposure associated with the volume of products manufactured and sold.