General Lines Property and Casualty Insurance Practice Exam

Question: 1 / 400

What is the primary function of "professional liability insurance"?

To protect professionals against claims of negligence related to their professional services.

The primary function of professional liability insurance is to protect professionals against claims of negligence related to their professional services. This type of insurance is crucial for individuals in fields such as medicine, law, accounting, and consulting, where the services provided can significantly impact clients. If a client alleges that a professional failed to provide the expected standard of care, this insurance can cover legal defense costs, settlements, or judgments resulting from such claims.

This coverage is specifically designed to address the risks inherent in providing professional services, distinguishing it from other types of insurance that may cover physical property or general business operations. In contrast, the other choices focus on different areas of risk management that do not pertain to the specific protection against negligence claims that professional liability insurance offers.

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To offer disability coverage for professionals.

To provide health benefits to workers.

To cover general business property losses.

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