Business Quiz: Miscellaneous Commercial Insurance

12 Questions | Total Attempts: 321

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Insurance Quizzes & Trivia

For those who are not business owners, the term “commercial insurance” may be lost on you a little bit. Simply put, however, much like any insurance for your home, car, pet, and even your health, commercial insurance is used for your business and for keeping it financially secure. What do you know about it?


Questions and Answers
  • 1. 
    Which of the following may be covered under a Farm coverage part?
    • A. 

      Farm buildings, equipment, and livestock

    • B. 

      Liability arising out of farm operations

    • C. 

      Growing crops

    • D. 

      Farm dwelling and its personal property

  • 2. 
    A breakdown of equipment covered under the Equipment Breakdown Protection coverage form results in the simultaneous breakdown of three other pieces of covered equipment. According to the form, how many "breakdowns" occurred in this loss?
    • A. 

      One

    • B. 

      Two

    • C. 

      Three

    • D. 

      Four

  • 3. 
    The insured knows that it might take several months for his damaged turbine to be fully repaired, so he authorizes $500 for temporary repairs so that production can resume. This expenditure would be covered under which coverage in the Equipment Breakdown Protection coverage form?
    • A. 

      Spoilage

    • B. 

      Errors or omissions

    • C. 

      Expediting expense

    • D. 

      Contingent business income

  • 4. 
    Under the Equipment Breakdown Protection coverage form, which of the following causes of damage to covered equipment would not be a covered "breakdown"?
    • A. 

      Electrical failure, including arcing

    • B. 

      Leakage at any valve, fitting, shaft seal, gland packing, joint, or connection

    • C. 

      Failure of pressure or vacuum equipment

    • D. 

      Mechanical failure, including rupture or bursting caused by centrifugal force

  • 5. 
    Which of the following statements apply to Professional Liability policies?
    • A. 

      They cover the insured's liability arising out of rendering or failing to render services of a professional nature.

    • B. 

      They duplicate the coverage provided by the CGL policy.

    • C. 

      They are tailored to fit specific occupational needs.

    • D. 

      They cover most general liability and automobile liability losses.

  • 6. 
    A business that wants coverage for its liability for employment-related acts can obtain it by purchasing which of the following?
    • A. 

      CGL insurance

    • B. 

      Workers Compensation and Employers Liability insurance

    • C. 

      Employment Practices Liability insurance

    • D. 

      Any of the above

  • 7. 
    Commercial insureds who need more Liability coverage than provided by a certain policy or want coverage for losses excluded by a certain policy should purchase which of the following?
    • A. 

      Difference in Conditions policy

    • B. 

      Commercial Umbrella policy

    • C. 

      Surety bond

    • D. 

      Fidelity bond

  • 8. 
    Which of these statements regarding Difference in Conditions insurance are correct?
    • A. 

      It excludes coverage for basic perils such as fire, lightning, and windstorm.

    • B. 

      It is written in conjunction with policies that cover basic perils.

    • C. 

      It does not have a deductible requirement.

    • D. 

      It covers property and liability exposures.

  • 9. 
    Which one of the following answer choices lists all of the parties to a Surety bond?
    • A. 

      Principal and obligee

    • B. 

      Principal, obligee, surety

    • C. 

      Surety and obligee

    • D. 

      Principal and surety

  • 10. 
    All of the following types of losses may be covered by the Equipment Breakdown Protection coverage form except which of the following?
    • A. 

      Business income losses and/or extra expenses

    • B. 

      Expediting expenses

    • C. 

      Losses because of spoilage damage

    • D. 

      Damage caused by fire or combustion explosion

  • 11. 
    How do deductibles apply in the Equipment Breakdown Protection coverage form?
    • A. 

      Deductibles apply separately for each applicable coverage unless the deductibles are shown as "combined" for any two or more coverages.

    • B. 

      A single deductible applies to all applicable coverages.

    • C. 

      Deductibles are always stated as a specific dollar amount.

    • D. 

      There are no deductibles under this coverage.

  • 12. 
    Under the terms of the Suspension provision in the Equipment Breakdown Protection coverage form, coverage on dangerous equipment can be suspended when?
    • A. 

      On 30 days' advance notice to the insured

    • B. 

      At the end of the policy period

    • C. 

      Immediately on delivery of written notice to the insured

    • D. 

      On 15 days' advance notice when sent by certified mail

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