Test Your Business Insurance Knowledge In This Quiz!
- 1.
What is a Rider?
- A.
A biker
- B.
A cowboy
- C.
An addtional clause to an amendment or a legal document
- D.
A type of book
- E.
A really cool amp
Correct Answer
C. An addtional clause to an amendment or a legal documentExplanation
A rider is an additional clause that is added to an amendment or a legal document. It provides additional details or conditions that modify the original document. Riders are commonly used in legislative processes to make changes or additions to existing laws or bills. They allow for flexibility and customization in legal documents to address specific concerns or issues.Rate this question:
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- 2.
This insurance protects against financial loss from a defect product that causes bodily harm or death
- A.
Rider
- B.
Product Liability
- C.
General Liability
- D.
Commercial Property
- E.
Home- Based Business
Correct Answer
B. Product LiabilityExplanation
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.Rate this question:
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- 3.
How much product liability should you purchase?
- A.
Should be based on the amount you produce in your company
- B.
Should be based on the amount of people in your company
- C.
Should be based on the amount of machines in your company
- D.
Should be based on your income
- E.
Should be base on how much money you oay your employees
Correct Answer
A. Should be based on the amount you produce in your companyExplanation
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.Rate this question:
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- 4.
What is another word for "Professional Liability Insurance"?
- A.
Hit and run insurance
- B.
Home-Based Business Insurance
- C.
Fun Insurance
- D.
Commercial Property Insurance
- E.
Errors and omissions insurance
Correct Answer
E. Errors and omissions insuranceExplanation
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.Rate this question:
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- 5.
Which best defines Commercial Property?
- A.
Covers everything related to cars
- B.
Covers everything related to people
- C.
Covers everything related to the loss and damage of company property
- D.
Covers everything related to loss of employment in the company
- E.
None of the above
Correct Answer
C. Covers everything related to the loss and damage of company propertyExplanation
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.Rate this question:
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- 6.
How many forms does property insurance policies come in?
- A.
10
- B.
8
- C.
6
- D.
4
- E.
2
Correct Answer
E. 2Explanation
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.Rate this question:
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- 7.
What does Home-Based Insurance cover?
- A.
Cover property damage
- B.
Cover homes
- C.
Covers property damage and homes
- D.
Covers the people that live in a home
- E.
None of the above
Correct Answer
A. Cover property damageExplanation
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.Rate this question:
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- 8.
What does General Liability Cover?
- A.
Covers legal issues such as accident, injuries claims of negligence
- B.
Covers to protect things like bodily harm, property damage, medical expenses, libel, cost of defending lawsuits, and settlements
- C.
Covers things that are general
- D.
None of the above
- E.
Both A&B
Correct Answer
E. Both A&BExplanation
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.Rate this question:
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- 9.
Business Insurance covers how much of an employee's salary?
- A.
20%
- B.
30%
- C.
60%
- D.
50%
- E.
45%
Correct Answer
C. 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.Rate this question:
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- 10.
What school are we at?
- A.
GHS
- B.
EHHS
- C.
JHS
- D.
SHMS
- E.
None of the above
Correct Answer
C. JHSExplanation
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.Rate this question:
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- 11.
How can business insurance be cancelled?
- A.
Say you don't want it anymore
- B.
It depends on your policy coverage, claim history, loss type, and the length of time you have been insured
- C.
It depends on the amount of money you have
- D.
It can't be cancelled
- E.
None of the above
Correct Answer
B. It depends on your policy coverage, claim history, loss type, and the length of time you have been insuredExplanation
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."Rate this question:
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- 12.
What is Business Umbrella Liability Insurance?
- A.
Provides life insurance
- B.
Provides you with house and car insurance
- C.
Provides House Insurance
- D.
Provides car safety
- E.
Provides extra layer security and supplementary coverage costs
Correct Answer
E. Provides extra layer security and supplementary coverage costsExplanation
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.Rate this question:
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