CPB (Certified Professional Biller) Certification Practice Exam

Which insurance type covers the cost of lawsuits resulting from bodily injury and false advertising?

1. Health Insurance

2. Workers' Compensation Insurance

3. Business Liability Insurance

4. Auto Insurance

The correct answer is: Business Liability Insurance

The correct choice is Business Liability Insurance. This type of insurance is specifically designed to protect businesses against claims resulting from injuries or damages that occur during the normal course of business operations. It covers litigation costs, settlements, and judgments related to bodily injury and property damage claims as well as issues arising from false advertising. Unlike health insurance, which focuses on medical expenses for individuals, or workers' compensation insurance that covers employee injuries while at work, business liability insurance provides broad coverage that addresses various legal liabilities businesses may face. Auto insurance is also unrelated, as it primarily covers vehicle-related incidents and does not address business liabilities in the same comprehensive way. Choosing business liability insurance is essential for any business owner looking to mitigate risks associated with potential lawsuits that could arise from everyday business activities, making it a crucial element of responsible business operation.