Exam 26: Commercial Liability Insurance

A-1 Electrical Service is an electrical contractor that employs 14 electricians.A-1 faces many loss exposures.One general liability exposure arises out of faulty work that A-1 electricians may perform for customers at their homes or businesses.This liability exposure is known as

Jenkins Company purchased a commercial umbrella policy with a $10 million limit and a $100,000 self-insured retention.The insurer required Jenkins Company to carry a $1 million per-occurrence limit on its general liability policy and a $1 million per-occurrence limit on its business auto policy.Jenkins purchased these required limits.A Jenkins driver was negligent while operating a company vehicle and killed another motorist.The court ruled that Jenkins must pay $5 million.How much of this amount will be paid by the umbrella policy?

Which of the following statements about purchasing cyber liability insurance is true? I.The coverage can be obtained by adding the appropriate endorsement to the general liability coverage. II.The coverage can be obtained by purchasing stand-alone cyber liability coverage.

An employee of Nelson Manufacturing was injured by a defective machine Nelson purchased from Clark Corporation.The employee's tort action against Clark was successful.Clark,in turn,sued Nelson,alleging that Nelson failed to provide proper operating instructions to the employee.This claim (Clark vs.Nelson)is covered under Part Two of Nelson's workers compensation and employer liability policy.Such claims are called

One physical damage coverage alternative under the Business Auto Policy provides coverage for losses caused by certain named perils,such as fire,lightning,or explosion;theft;windstorm,hail or earthquake;flood;vandalism or mischief;or the sinking,burning,collision or derailment of any conveyance transporting the covered auto.This physical damage coverage alternative is

One type of liability insurance covers damages arising from the failure of a data holder to protect private information from being accessed by an unauthorized party.This type of liability coverage is called