Georgia Property & Casualty Practice Exam

Which type of liability would an insurer typically provide coverage for in commercial transport?

1. General liability

2. Property damage liability

3. Professional liability

4. Workers' compensation

The correct answer is: Property damage liability

In the context of commercial transport, property damage liability is a type of coverage that an insurer would typically provide. This coverage is essential because it protects businesses against claims resulting from damage to another person's property caused by the insured's operations or vehicles while conducting business. For example, if a commercial vehicle is involved in an accident that damages someone else's property, property damage liability insurance would cover the costs associated with those damages. This type of liability is crucial for businesses that require transportation, as it helps them manage financial risks related to accidents and other incidents that may occur during their normal course of operations. Other types of liability coverage, such as general liability, may also be relevant to commercial transport but are broader in scope and cover a range of general risks, not specifically focused on property damage incurred during transport activities. Professional liability targets specific professional services offered, and workers' compensation is designed to cover employees' injuries while on the job, not property-related incidents. Thus, in the context of the question, property damage liability is the most pertinent type of coverage for commercial transport.