Georgia Property & Casualty Practice Exam

If Manny wants to insure his legal liability for damaged customer property, which policy should he choose?

1. Trip transit policy

2. Annual transit policy

3. Motor truck cargo policy

4. Installation floater

The correct answer is: Motor truck cargo policy

To ensure coverage for legal liability related to damaged customer property, the most appropriate choice is the motor truck cargo policy. This type of policy provides insurance for carriers, safeguarding them against loss or damage to property while it is being transported. It also typically includes provisions for legal liability, meaning that if Manny, as the carrier, were responsible for damaging a customer's goods during transit, this policy would cover those damages and any related legal liabilities arising from such incidents. Each of the other options does not specifically address liability for customer property in transit. A trip transit policy generally covers a single trip, focusing on the goods being moved, but may not provide comprehensive liability coverage. An annual transit policy might cover goods over a longer term but still is not tailored specifically to cover legal liability. An installation floater covers property that is being installed but does not extend to general liability for transporting goods belonging to customers. Thus, the motor truck cargo policy is the clear choice for Manny’s needs regarding insuring legal liability for damaged customer property.