CMFAS CGI Commercial Liability Insurance question: public and product liability in the KIND of harm

CMFAS CGICommercial Liability Insurance

How does professional indemnity differ from public and product liability in the KIND of harm it addresses?

A PI chiefly covers pure financial loss; PL and product cover injury and physical damage
B PI covers only bodily injury, while PL and product cover only financial loss
C PI and PL both cover only physical damage to the insured's own property and assets
D PI covers physical damage to property, while PL and product cover pure financial loss

Show the answer and explanation

Answer: A. PI chiefly covers pure financial loss; PL and product cover injury and physical damage

Public and product liability chiefly cover bodily injury and physical property damage, whereas PI chiefly covers pure economic loss caused by faulty advice or work, where nothing may be physically damaged.

Common mistake

Confusing the harm each cover targets — PI is about financial loss, not physical injury or damage.

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CMFAS CGI Commercial Liability Insurance question: public and product liability in the KIND of harm

Answer: A. PI chiefly covers pure financial loss; PL and product cover injury and physical damage

Common mistake

Related CMFAS CGI questions

CMFAS CGI Commercial Liability Insurance question: public and product liability in the KIND of harm

Answer: A. PI chiefly covers pure financial loss; PL and product cover injury and physical damage

Common mistake

Related CMFAS CGI questions