Commercial General Liability Insurance Quiz

What is a key feature of Claims-Made Coverage?

• It covers claims that occur during the policy period

• It covers claims first made during the policy period

• It covers liabilities assumed under contract

• It covers medical expenses regardless of fault

Answer explanation

Claims-Made Coverage specifically covers claims that are first made during the policy period, not just those that occur. This distinguishes it from other types of coverage.

Which coverage handles defamation claims?

• Contractual Liability

• Products and Completed Operations Liability

• Personal and Advertising Liability

• Premises and Operations Liability

Answer explanation

Personal and Advertising Liability coverage specifically addresses defamation claims, including slander and libel, making it the correct choice for handling such issues.

Which type of liability covers injuries caused by products sold by the insured?

• Premises and Operations Liability

• Products and Completed Operations Liability

• Personal and Advertising Liability

• Contractual Liability

Answer explanation

Products and Completed Operations Liability specifically covers injuries caused by products sold by the insured, making it the correct choice for this question.

What does Premises and Operations Liability cover?

• Liabilities assumed under a contract

• Bodily injury or property damage on the insured's premises or due to their operations

• Medical expenses regardless of fault

• Non-physical injuries like libel or slander

Answer explanation

Premises and Operations Liability specifically covers bodily injury or property damage that occurs on the insured's premises or as a result of their operations, making this the correct choice.

What does Medical Payments coverage provide?

• Coverage for liabilities assumed under contract

• Payment for small-limit medical expenses without regard to fault

• Protection against defamation claims

• Coverage for bodily injury or property damage

Answer explanation

Medical Payments coverage provides payment for small-limit medical expenses without regard to fault, meaning it covers medical costs for injuries regardless of who is responsible.

What is a key aspect of Commercial General Liability insurance?

• It only covers medical expenses

• It provides liability coverage for a business

• It only covers property damage

• It only covers bodily injury

Answer explanation

A key aspect of Commercial General Liability insurance is that it provides liability coverage for a business, protecting against claims of bodily injury and property damage, not just limited to medical expenses or specific types of damage.

What is covered under Contractual Liability?

• Liabilities assumed under an oral or written contract

• Bodily injury on the insured's premises

• Medical expenses for third parties

• Non-physical injuries like invasion of privacy

Answer explanation

Contractual Liability specifically covers liabilities that are assumed under an oral or written contract. This means that if you agree to take on certain responsibilities in a contract, those liabilities are covered.

Which coverage would respond to a passerby tripping over a loose sidewalk tile?

• Medical Payments

• Premises and Operations Liability

• Products and Completed Operations Liability

• Contractual Liability

Answer explanation

Medical Payments coverage responds to injuries sustained by a passerby, such as tripping over a loose sidewalk tile, by covering their medical expenses regardless of fault.

What type of injury does Personal and Advertising Liability cover?

• Medical expenses

• Non-physical injuries like invasion of privacy

• Property damage

• Bodily injury

Answer explanation

Personal and Advertising Liability covers non-physical injuries, such as invasion of privacy, rather than medical expenses, property damage, or bodily injury.

Which coverage would respond if a customer slips on a wet floor in a restaurant?

• Products and Completed Operations Liability

• Contractual Liability

• Premises and Operations Liability

• Personal and Advertising Liability

Answer explanation

Premises and Operations Liability covers incidents occurring on the business's premises, such as a customer slipping on a wet floor. This type of liability insurance protects against claims arising from such accidents.