Insurance Coverage and Policies

What are umbrella/excess liability policies?

• They provide additional liability coverage above the limits of personal auto and homeowners policies.

• They are only applicable to commercial insurance policies.

• They are designed to cover only property damage claims.

• They replace standard auto and homeowners insurance policies.

What are Surplus Lines?

• Insurance policies that are available in the admitted market.

• Insurance provided by unauthorized insurers for unique or high-risk exposures.

• Standard insurance policies offered by state-licensed insurers.

• Insurance that is only available for low-risk individuals.

What are Surety Bonds?

• Surety Bonds are agreements between two parties only.

• Surety Bonds involve three parties: Principal (who must perform), Obligee (protected by the bond), and Surety (guaranteeing the principal’s performance).

• Surety Bonds are only used in real estate transactions.

• Surety Bonds are a type of insurance for personal loans.

What are Contract Bonds?

• Contract Bonds are insurance policies for construction workers.

• Contract Bonds guarantee performance of construction contracts, including bid, performance, and payment bonds.

• Contract Bonds are agreements between contractors and suppliers.

• Contract Bonds are financial instruments used in real estate transactions.

What is Difference in Conditions (DIC) insurance?

• A type of insurance that covers only fire damage.

• Insurance that fills gaps in standard property policies by covering excluded perils like flood, earthquake, or landslide, often for high-value commercial risks.

• A policy that provides coverage for personal property only.

• An insurance policy that is only applicable to residential properties.

What is a Personal Umbrella (DL 98 01)?

• A type of insurance that covers only auto accidents.

• A policy that provides additional liability coverage above personal auto and homeowners policies.

• A plan that exclusively covers property damage.

• An insurance product that only protects against theft.

What are License and Permit Bonds?

• A type of insurance for businesses

• A requirement for government compliance

• A form of personal guarantee

• A tax-related document

What is the National Flood Insurance Program (NFIP)?

• A program that provides flood insurance through private insurers or directly by FEMA, available in communities adopting FEMA floodplain management standards.

• A federal program that offers loans to homeowners for flood damage repairs.

• A state-run initiative that provides grants for flood prevention measures.

• An insurance program that only covers commercial properties against flood damage.

What is Directors and Officers (D&O) Liability insurance?

• A type of insurance that protects corporate directors and officers from personal liability for wrongful acts committed in their managerial capacity.

• An insurance policy that covers only property damage caused by directors and officers.

• A form of insurance that provides coverage for employee injuries in the workplace.

• An insurance that protects companies from financial losses due to market fluctuations.

What is Employment Practices Liability (EPLI) insurance?

• EPLI covers claims related to employment practices such as discrimination, harassment, wrongful termination, and retaliation.

• EPLI is a type of insurance that protects businesses from property damage claims.

• EPLI provides coverage for employee health insurance and benefits.

• EPLI is a legal term for employee contracts and agreements.