Test Your Business Insurance Knowledge In This Quiz!

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Sac_fcp
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Quizzes Created: 1 | Total Attempts: 346
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  • 1/12 Questions

    What is a Rider?

    • A biker
    • A cowboy
    • An addtional clause to an amendment or a legal document
    • A type of book
    • A really cool amp
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About This Quiz

Explore your understanding of business insurance through this engaging quiz! Test knowledge on key topics like riders, product liability, professional liability insurance, and commercial property. Perfect for enhancing risk management skills and compliance awareness.

Test Your Business Insurance Knowledge In This Quiz! - Quiz

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  • 2. 

    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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  • 3. 

    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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  • 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. 

    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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  • 6. 

    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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  • 7. 

    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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  • 8. 

     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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  • 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. 

    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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  • 11. 

    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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  • 12. 

    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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Quiz Review Timeline (Updated): Mar 22, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 22, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Feb 03, 2010
    Quiz Created by
    Sac_fcp
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