New York State Asbestos Investigator Practice Exam

What does general liability insurance primarily cover?

1. Claims involving asbestos exposure

2. Bodily injury and property damage to third parties

3. Loss of income due to inspection errors

4. Legal fees associated with inspection claims

The correct answer is: Bodily injury and property damage to third parties

General liability insurance is designed to protect businesses from financial loss resulting from claims of bodily injury or property damage that occur to third parties. This type of insurance covers various incidents where a third party gets injured or their property gets damaged due to the operations of the insured business. For example, if a client is injured on a job site or if the property of a client is accidentally damaged during an investigation, this insurance would cover the claims arising from those incidents. While asbestos exposure claims, loss of income due to inspection errors, and legal fees may relate to risks involved in business operations, they do not fall under the primary scope of general liability insurance. Asbestos claims usually require specialized coverage due to the unique legal and health implications surrounding asbestos. Loss of income relates to different types of insurance, such as business interruption insurance, and legal fees often fall under professional liability insurance, which is separate from general liability. Thus, the emphasis of general liability remains squarely on the protection against claims for bodily injury and property damage to third parties.