Test Your Business Insurance Knowledge In This Quiz!

2.

This insurance protects against financial loss from a defect product that causes bodily harm or death

Rider
Product Liability
General Liability
Commercial Property
Home- Based Business

Correct Answer

A. Product Liability

Explanation

Product Liability insurance is the correct answer because it specifically covers financial loss resulting from a defective product that causes bodily harm or death. This type of insurance is important for businesses that manufacture, distribute, or sell products, as it protects them from potential lawsuits and claims related to product defects. It provides coverage for legal expenses, medical costs, and compensation for injured parties. By having Product Liability insurance, businesses can mitigate the financial risks associated with product-related accidents or injuries.

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3.

How much product liability should you purchase?

Should be based on the amount you produce in your company
Should be based on the amount of people in your company
Should be based on the amount of machines in your company
Should be based on your income
Should be base on how much money you oay your employees

Correct Answer

A. Should be based on the amount you produce in your company

Explanation

The amount of product liability insurance that should be purchased should be based on the amount of products that a company produces. This is because the more products a company produces, the higher the risk of potential product liability claims. By purchasing an appropriate amount of product liability insurance, the company can protect itself financially in the event of any claims or lawsuits related to their products.

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4.

What is another word for "Professional Liability Insurance"?

Hit and run insurance
Home-Based Business Insurance
Fun Insurance
Commercial Property Insurance
Errors and omissions insurance

Correct Answer

A. Errors and omissions insurance

Explanation

Errors and omissions insurance is another term for professional liability insurance. This type of insurance provides coverage for professionals in case they make mistakes or fail to perform their duties properly, resulting in financial losses for their clients. It protects professionals from potential lawsuits and claims that may arise due to errors, omissions, negligence, or malpractice in their professional services.

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5.

Which best defines Commercial Property?

Covers everything related to cars
Covers everything related to people
Covers everything related to the loss and damage of company property
Covers everything related to loss of employment in the company
None of the above

Correct Answer

A. Covers everything related to the loss and damage of company property

Explanation

Commercial Property refers to a type of insurance coverage that protects businesses against the loss or damage of their physical assets, such as buildings, equipment, inventory, and furniture. This coverage is specifically designed to address the unique risks and challenges faced by businesses, ensuring that they are financially protected in the event of property damage or loss.

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6.

How many forms does property insurance policies come in?

10
8
6
4
2

Correct Answer

A. 2

Explanation

Property insurance policies come in two forms: named perils and all-risk. Named perils policies only cover specific risks that are explicitly listed in the policy, while all-risk policies provide coverage for all risks except those that are specifically excluded. Therefore, the correct answer is 2.

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7.

What does Home-Based Insurance cover?

Cover property damage
Cover homes
Covers property damage and homes
Covers the people that live in a home
None of the above

Correct Answer

A. Cover property damage

Explanation

Home-Based Insurance covers property damage. This type of insurance provides coverage for any damage that may occur to the insured's property, such as the home itself or any belongings within it. It protects against risks like fire, theft, or natural disasters, ensuring that the policyholder is financially protected in case of any property damage.

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8.

What does General Liability Cover?

Covers legal issues such as accident, injuries claims of negligence
Covers to protect things like bodily harm, property damage, medical expenses, libel, cost of defending lawsuits, and settlements
Covers things that are general
None of the above
Both A&B

Correct Answer

A. Both A&B

Explanation

General Liability insurance covers a wide range of legal issues, including accidents, injuries, and claims of negligence. It also provides protection for bodily harm, property damage, medical expenses, libel, and the cost of defending lawsuits and settlements. Therefore, the correct answer is both A and B.

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9.

Business Insurance covers how much of an employee's salary?

20%
30%
60%
50%
45%

Correct Answer

A. 60%

Explanation

Business insurance typically covers up to 60% of an employee's salary. This means that in the event of an employee being unable to work due to illness or injury, the insurance policy would provide compensation equivalent to 60% of their regular salary. This coverage helps to protect both the employee and the employer from financial hardship during such circumstances.

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10.

What school are we at?

GHS
EHHS
JHS
SHMS
None of the above

Correct Answer

A. JHS

Explanation

The correct answer is JHS because it is the only option that stands for "Junior High School." The other options do not represent any commonly known school abbreviations.

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11.

How can business insurance be cancelled?

Say you don't want it anymore
It depends on your policy coverage, claim history, loss type, and the length of time you have been insured
It depends on the amount of money you have
It can't be cancelled
None of the above

Correct Answer

A. It depends on your policy coverage, claim history, loss type, and the length of time you have been insured

Explanation

Business insurance can be cancelled depending on various factors such as policy coverage, claim history, loss type, and the length of time the business has been insured. These factors are taken into consideration by the insurance company when determining whether or not to cancel the policy. The amount of money the business has is not a determining factor for cancelling business insurance. Therefore, the correct answer is "It depends on your policy coverage, claim history, loss type, and the length of time you have been insured."

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12.

What is Business Umbrella Liability Insurance?

Provides life insurance
Provides you with house and car insurance
Provides House Insurance
Provides car safety
Provides extra layer security and supplementary coverage costs

Correct Answer

A. Provides extra layer security and supplementary coverage costs

Explanation

Business Umbrella Liability Insurance provides an extra layer of security and supplementary coverage costs. This type of insurance is designed to provide additional liability coverage beyond the limits of other insurance policies that a business may have. It helps protect businesses from large and unexpected liability claims that could potentially bankrupt them. By having umbrella liability insurance, businesses can have peace of mind knowing that they have added protection in case of a catastrophic event or lawsuit.

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Test Your Business Insurance Knowledge In This Quiz!

What is a Rider?

This insurance protects against financial loss from a defect product that causes bodily harm or death

How much product liability should you purchase?

What is another word for "Professional Liability Insurance"?

Which best defines Commercial Property?

How many forms does property insurance policies come in?

What does Home-Based Insurance cover?

What does General Liability Cover?

Business Insurance covers how much of an employee's salary?

What school are we at?

How can business insurance be cancelled?

What is Business Umbrella Liability Insurance?