Question

    What is the purpose of a consequential loss policy?

    A To cover loss of property due to fire Correct Answer Incorrect Answer
    B To cover loss of profits due to business interruption Correct Answer Incorrect Answer
    C To cover liability claims against the insured Correct Answer Incorrect Answer
    D To cover medical expenses of employees Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Consequential loss policies, also known as business interruption insurance, cover indirect losses such as lost profits, increased expenses, and other financial losses that result from a covered event (like fire, flood, etc.) that disrupts business operations.

    Practice Next
    More Insurance Awareness Questions
    ask-question