Another Term for Liability Coverage That Protects You from Claims

question 44

Multiple Choice

Another term for liability coverage that protects you from claims if a client holds you responsible for errors or you fail to perform as promised is:

• A)umbrella policy.
• B)personal property floater.
• C)errors and omissions.
• D)endorsement.
• E)self-insurance.

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Definitions:

Expected Profit

The forecasted or anticipated earnings from an investment or business activity, considering potential risks and returns.

Current Cost

The price that would be paid for goods or services if purchased in the current market, as opposed to historical cost.

User Cost

The cost of using a durable good or asset, which includes depreciation, interest lost on funds used to buy the asset, and maintenance costs.

Nonrenewable Resources

Natural resources that cannot be replenished within a human lifetime, such as fossil fuels or minerals.