Answer Key
Insurance – Comprehension Check
- Complete this sentence about Professional Liability Insurance: “This coverage protects your business against malpractice, errors,...” [negligence and omissions.]
This coverage protects your business against malpractice, errors, negligence and omissions. - There is a grammar mistake in this sentence: “Small businesses selling or manufacturing products should be protected in the event that a person becoming injured as a result of using the product.” Which of the options has the mistake? [should be protected in the event that a person becoming]
Small businesses selling or manufacturing products should be protected in the event of a person becoming injured as a result of using the product. - Which type of liability insurance is the most suitable for businesses providing services? [professional liability insurance]
Professional Liability Insurance: Business owners providing services will need to consider having professional liability insurance known as errors and omissions. - What can quickly escalate your premiums? [purchasing separate types of insurance]
Get the Package Deal: Purchasing separate types of business insurance from various insurers can quickly escalate your premiums. - What does business liability insurance protect you from? [a lawsuit for property damages]
Business liability insurance protects your small business in the event of a lawsuit for personal injury or property damages. - Which is a common misconception of a limited liability company? [liability insurance is not necessary]
A common misconception of a limited liability company (LLC) or an incorporated company is a business owner is protected from personal liability and liability insurance is not necessary. - Which is the consequence of the September 11 terrorist attacks? [insurance costs increased and coverage decreased]
After a decade of intense competition among insurers and low premiums, the fallout from the Sept 11 terrorist attacks and the stock market have increased insurance costs while providing less coverage. - Which of the words best completes this sentence? “It could be the most important decision to your company's...” [survival.]
It could be the most important decision to your company's survival. - “Owning and operating a small business comes with plenty of responsibility and ACCOUNTABILITY”. Which is the best definition of the word ACCOUNTABLE? [liable for one's actions]
accountable - liable to account for one's actions - The extent of liability insurance [varies from insurer to insurer]
The extent of business liability coverage varies from insurer to insurer.