General Business Liability

Question 1

Three categories of liability insurance

Answer 1

General liability

Specialized liability

Worker’s compensation

Question 2

Categorisations of business general liability

Answer 2

Direct Liability

Vicarious Liability

Contractual Liability

Question 3

Vicarious Liability

Answer 3

Vicarious Liability is also called indirect liability, most often arises when a firm hires an independent subcontractor.

Question 4

Contractual Liability

Answer 4

Contractual liability occurs if a firm accepts by contract a liability it otherwise would not have.

Question 5

Long tail claims

Answer 5

Insurers call claims filed many years after the alleged injury long-tail claims.