Insurance Types

A business owner wants a single insurance policy that covers both damage to their property and liability claims from customers injured on their premises. Which type of policy would best suit their needs?

A homeowner's insurance covers fire, theft, and vandalism. However, they are concerned about liability if someone is injured on their property and sues them for a large sum, exceeding their homeowner's liability coverage. What type of insurance could provide additional liability coverage in this scenario?

Which type of insurance policy is designed to protect against financial losses resulting from lawsuits and legal claims made by third parties due to bodily injury or property damage caused by the insured?

Which type of policy provides protection against risks such as fire, theft, and weather damage?

A company wants to insure their building against fire damage. Which type of insurance policy would be most appropriate for this purpose?

A business owner has a property insurance policy with a $1,000 deductible. If a fire causes $10,000 in damage to the property, how much will the insurance company typically pay?

A business owner wants to ensure they have enough coverage to handle a wide range of potential liabilities beyond what their standard liability policy covers. Which type of policy could provide this additional layer of security?

A company has a general liability policy with a $1 million limit. They are concerned that a major lawsuit could exceed this limit. Which type of insurance could they purchase to provide additional coverage beyond the $1 million limit?

What type of policy combines different types of insurance coverage, such as property and liability, into a single policy?

If a building is insured under a property insurance policy, which of the following events would typically be covered?

A business owner wants an insurance policy that covers only one specific type of risk. Which type of policy would be most appropriate?

A business has a $500,000 liability policy. They are sued, and the court awards $750,000 in damages. If the business has an umbrella policy with a $1 million coverage and a self-insured retention of $10,000, how much will the umbrella policy cover?

Which type of insurance policy is also known as 'excess insurance'?

What is the primary difference between a package policy and a monoline policy?

What is the main purpose of liability insurance?

A building has sustained damage from a fire. The insurance policy covers the 'replacement cost.' What does this term mean in the context of the insurance coverage?

A business has a property insurance policy with an 'actual cash value' clause. If a machine is destroyed by a covered peril, how will the insurance company typically determine the payout?

Which of the following best describes the primary difference between 'actual cash value' and 'replacement cost' when valuing insured property?

A small business owner is looking to purchase a single insurance policy that will cover both their business property and any potential liability claims made against the business. Which type of policy would be most suitable?

A company has fire insurance with a $20,000 deductible and also an umbrella policy that includes a $10,000 self-insured retention (SIR). If a fire causes $150,000 in damages, how much will the company have to pay out-of-pocket, considering both policies?

If a property insurance policy uses 'actual cash value' to determine the reimbursement for a loss, what factor is taken into consideration when calculating the payment?

A company carries a $500,000 liability policy and a $1 million umbrella policy with a $50,000 self-insured retention (SIR). The company faces a lawsuit resulting in $800,000 in damages. How much will the umbrella policy cover?

What is a key characteristic of an umbrella policy that distinguishes it from a standard liability policy?

A business has a $1 million liability policy and a $2 million umbrella policy with a $100,000 SIR. The business is sued and loses the case, with the judgment set at $2.5 million. How much will the business pay out of pocket?

A homeowner's property insurance policy has a $2,000 deductible. If a fire causes $25,000 in damage and the insurance company values the loss at 'actual cash value' which is calculated to be $18,000 due to depreciation, what amount will the homeowner receive from the insurer?

What is the primary advantage of a package insurance policy compared to purchasing separate, individual policies?

A manufacturing company wants to protect its assets from various risks, including property damage, equipment breakdown, and business interruption. Which type of insurance policy would provide the broadest coverage for these combined risks?

A company's warehouse is damaged by a tornado. The company has property insurance with a replacement cost policy. What will the insurance company pay to cover the damage?

If a business owner chooses to insure their property for 'actual cash value' rather than 'replacement cost,' what potential disadvantage might they face in the event of a loss?

What key factor determines when an umbrella policy starts to provide coverage?

A company has a general liability policy with a limit of $500,000 and an umbrella policy with a limit of $1 million. The company is sued and the court awards $1.2 million in damages. How much will the company need to pay out-of-pocket?

A business has a property insurance policy that covers fire damage. However, their state is prone to hurricanes, which could cause significant wind and flood damage. What type of additional coverage should they consider purchasing to protect against hurricane-related losses?

What is a 'monoline' insurance policy designed to cover?

A company wants to purchase flood insurance for its warehouse, but also wants liability coverage for customer injuries on its property. Which type of policy offers the most convenient way to obtain both coverages?

In determining the value of a loss, what is the key difference between 'replacement cost' coverage and 'actual cash value' coverage?

Which scenario would typically require an umbrella policy to provide coverage?

If a business's property is insured for $500,000 under an 'actual cash value' policy, and the property has depreciated by 40% since it was purchased, what is the maximum amount the business can expect to receive in the event of a total loss, disregarding any deductible?

Which of the following insurance policies covers civil liabilities to third parties?