Worksheet: Chapter 14.
2 - Business Insurance Instructions: Complete the
multiple-choice and matching sections below using the terms provided
Multiple Choice Questions
1. What is an insurance policy?
a) A type of business plan
b) A written agreement between an insurer and the insured
c) A document detailing company policies
d) A list of employees in a business
2. What does the term "premium" refer to in insurance?
a) The amount paid to an insurance company for coverage
b) The total amount of claims filed
c) The deductible amount
d) The maximum payout for a claim
3. What is a "claim"?
a) A request for payment under an insurance policy
b) A report of a workplace incident
c) A policy renewal notice
d) A form of advertisement
4. What does "deductible" mean?
a) The total amount of insurance coverage
b) The amount the insured must pay before coverage kicks in
c) A type of premium
d) The maximum payout for a policy
5. What is general liability insurance designed to cover?
a) Loss of income due to business interruption
b) Damages related to accidents and injuries on business property
c) Professional mistakes in services
d) Product defects
6. What does product liability insurance protect against?
a) Loss from employee theft
b) Claims arising from injuries caused by products sold
c) Errors in financial reporting
d) Damage to the business property
7. Which type of insurance protects professionals against claims of negligence?
a) General liability insurance
b) Product liability insurance
c) Professional liability insurance
d) Commercial insurance
8. What is commercial insurance?
a) Insurance for personal vehicles
b) Coverage for business-related risks
c) Insurance specifically for home-based businesses
d) Life insurance for business owners
9. What is the primary purpose of liability insurance?
a) To cover employee wages
b) To protect against legal claims from injuries or damages
c) To cover the cost of inventory
d) To insure physical assets
10. What does business interruption insurance cover?
a) Costs incurred from employee turnover
b) Loss of income due to unforeseen disruptions in business operations
c) Property damage from natural disasters
d) Liability claims from customers
11. What does a fidelity bond provide coverage for?
a) Personal injury claims
b) Employee theft and dishonesty
c) Property damage
d) Business interruptions
12. What is directors and officers insurance designed to protect?
a) Personal assets of employees
b) Claims against company executives for wrongful acts
c) General business liability
d) Product-related claims
13. What does data breach insurance cover?
a) Loss of physical property
b) Claims related to unauthorized access to sensitive information
c) Liability for workplace injuries
d) Employee health benefits
14. What type of insurance provides coverage for injuries on the job?
a) Commercial insurance
b) Workers’ compensation insurance
c) Property insurance
d) Unemployment insurance
15. What is the purpose of unemployment insurance?
a) To provide benefits for work-related injuries
b) To cover lost wages for unemployed individuals
c) To insure business assets
d) To protect against data breaches
16. What does disability insurance provide?
a) Coverage for property damage
b) Income replacement for individuals unable to work due to illness or injury
c) Liability protection for businesses
d) Health insurance for employees
Matching Questions
Match each term to its correct definition.
1. Insurance Policy
2. Premium
3. Claim
4. Deductible
5. General Liability Insurance
6. Product Liability Insurance
7. Professional Liability Insurance
8. Commercial Insurance
9. Liability Insurance
10. Business Interruption Insurance
11. Fidelity Bond
12. Directors and Officers Insurance
13. Data Breach Insurance
14. Workers’ Compensation Insurance
15. Unemployment Insurance
16. Disability Insurance
a) Coverage for loss of income due to business disruptions
b) A request for payment under an insurance policy
c) The amount paid for insurance coverage
d) An agreement providing coverage against specific risks
e) Protects businesses from legal claims related to products
f) Coverage against accidents on business premises
g) Protects professionals against claims of negligence
h) Insurance for various business-related risks
i) Protects against legal claims for damages or injuries
j) The amount paid out of pocket before insurance kicks in
k) Coverage for employee theft and dishonesty
l) Protects executives against claims for wrongful acts
m) Claims related to unauthorized access to sensitive information
n) Provides coverage for injuries on the job
o) Covers lost wages for unemployed individuals
p) Income replacement for individuals unable to work
Answer Key
Multiple Choice:
1. b
2. a
3. a
4. b
5. b
6. b
7. c
8. b
9. b
10. b
11. b
12. b
13. b
14. b
15. b
16. b
Matching: 1 - d
2-c
3-b
4-j
5-f
6-e
7-g
8-h
9-i
10 - a
11 - k
12 - l
13 - m
14 - n
15 - o
16 - p
