Resource Question - Liability Ch#5

• Liability insurance protects against legal liability for unintentional property loss or body injury to others.
• Third party refers to the party that is not the insured or the insurer in a liability insurance contract.
• Liability insurance is challenging to underwrite due to the possibility of lawsuits and uncertain legal liability.
• Entertainment risks like movie theaters and nightclubs have heightened premises liability exposure.
• Slip and trip exposure is assessed by evaluating the condition of the property and warning signs in hazardous areas.
• Product liability underwriting considers the manufacturer of products, final use, distribution, testing, warnings, and quality control.
• The Preston v. Canadian Legion case established principles for commercial slip and fall liability.
• Employers may need to purchase product liability insurance even if workers are eligible for worker's compensation.
• Liability insurance for additional named insureds increases the possibility of lawsuits and costs to the insurer.
• The ABC rule establishes the duty of care, breach, and causal relationship needed to prove negligence in a lawsuit.
• Personal liability can be affected by factors such as lifestyle, occupation, hobbies, and previous losses.
• Host liquor liability refers to the potential liability a person faces when serving alcohol to guests.
• Liability arising from social business gatherings is often excluded and may require additional coverage.
• A student's activities away from home can result in liability for the applicant.
• Volunteer work can present a liability exposure, especially when working with children or in sports.
• Personal umbrella policies offer higher limits of insurance, drop-down coverage, and wider territorial limits.
• Technological changes, such as drone technology and e-commerce, can create new liability exposures.
• Drones used for commercial purposes require specialized commercial coverage.
• Many CGL policies have exclusions for data liability arising from e-commerce.
• Underwriters should be aware of these factors and assess the liability exposure of each applicant.

Test your knowledge on liability insurance and its various types with this informative quiz. From slip and trip exposure to product liability underwriting, this quiz covers all the essential topics of liability insurance. You will also learn about the principles established by the Preston v. Canadian Legion case, the ABC rule, and the liability exposure of volunteer work and social business gatherings. So, whether you're an insurance professional or just interested in knowing more about liability insurance, this quiz is perfect for you.