Insurance and Liability Quiz

What does Cyber Liability insurance cover?

• Professional negligence

• Losses from cyberattacks and data breaches

• Employee theft

• Natural disasters

Answer explanation

Cyber Liability insurance specifically covers losses from cyberattacks and data breaches, protecting businesses from the financial impact of these incidents. Other options like professional negligence and natural disasters are not covered.

What does Employee Dishonesty coverage protect against?

• Theft by outsiders

• Loss from cyberattacks

• Loss from fraudulent acts by employees

• Damage from natural disasters

Answer explanation

Employee Dishonesty coverage specifically protects against losses resulting from fraudulent acts committed by employees, making it the correct choice. The other options pertain to different types of risks.

What does Directors and Officers insurance cover?

• Cyberattacks

• Natural disasters

• Employee theft

• Liability claims against corporate directors

Answer explanation

Directors and Officers insurance primarily covers liability claims against corporate directors, protecting them from legal actions related to their decisions and actions in their corporate roles.

Which insurance covers claims of wrongful employment practices?

• Errors and Omissions

• Medical Malpractice

• Employment Practices Liability

• Cyber Liability

Answer explanation

Employment Practices Liability insurance specifically covers claims related to wrongful employment practices, such as discrimination, harassment, and wrongful termination, making it the correct choice.

Which type of insurance covers losses from burglaries and theft by outsiders?

• Mysterious Disappearance

• Theft

• Employee Dishonesty

• Forgery and Alteration

Answer explanation

Theft insurance specifically covers losses from burglaries and theft by outsiders, making it the correct choice. Other options like Employee Dishonesty and Forgery relate to different types of risks.

What is covered under Robbery insurance?

• Losses from cyberattacks

• Losses from employee fraud

• Losses from violent theft by intruders

• Losses from natural disasters

Answer explanation

Robbery insurance specifically covers losses from violent theft by intruders, making it distinct from other types of losses such as those from cyberattacks, employee fraud, or natural disasters.

What is the purpose of an Umbrella/Excess Liability policy?

• To provide additional limits above primary policies

• To cover employee theft

• To insure against cyberattacks

• To protect against natural disasters

Answer explanation

An Umbrella/Excess Liability policy provides additional limits above primary policies, offering extra protection against large claims that exceed the coverage of standard insurance policies.

Which coverage pays for property loss from forced illegal entry?

• Forgery and Alteration

• Mysterious Disappearance

• Burglary

• Robbery

Answer explanation

Burglary coverage specifically protects against property loss due to forced illegal entry into a building, making it the correct choice for this question.

What does Forgery and Alteration insurance cover?

• Loss from altered checks or drafts

• Loss from employee theft

• Loss from cyberattacks

• Loss from natural disasters

Answer explanation

Forgery and Alteration insurance specifically covers losses from altered checks or drafts, protecting businesses from financial fraud. The other options, such as employee theft, cyberattacks, and natural disasters, are not covered by this type of insurance.

Which insurance covers unexplained loss of property?

• Theft

• Robbery

• Mysterious Disappearance

• Employee Dishonesty

Answer explanation

Mysterious Disappearance insurance specifically covers losses that cannot be explained, unlike Theft or Robbery, which involve clear criminal acts. This makes it the correct choice for unexplained property loss.