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Chapter 3: Types of Policies, Bonds, and Related Terms

Casualty & Liability Insurance Coverage

What You'll Learn in Chapter 3

In this chapter, you will learn about a wide variety of policies available in Casualty or Liability insurance:

  • Commercial General Liability (CGL)
  • Workers Compensation
  • Personal and Business Auto
  • Professional Liability policies

By the end of this chapter, you will be able to:

Explain each type of coverage in terms of its features and benefits, and suitability for different types of insureds.

Chapter 3 Study Parts

Policy Types at a Glance

Commercial General Liability

Protects businesses from third-party claims for bodily injury and property damage

Covered in: Part 1

Personal Auto Policy

Car insurance for regular people - liability, medical, UM/UIM, physical damage

Covered in: Part 2

Business Auto

Commercial auto coverage for businesses with vehicle fleets

Covered in: Part 2

Surety Bonds

Three-party agreements guaranteeing performance or payment

Covered in: Part 5

Workers Compensation

Benefits for work-related injuries - the "exclusive remedy" trade-off

Covered in: Part 3

Commercial Crime

8 insuring agreements protecting against theft, forgery, and fraud

Covered in: Part 4

Professional Liability

Malpractice and E&O coverage for professionals

Covered in: Part 6

Umbrella & Excess Liability

Catastrophe protection over primary policies

Covered in: Part 7

Practice Chapter 3

Reinforce your learning with flashcards and quizzes for this chapter