CMFAS CGI Work Injury Compensation Insurance question: components of a commercial insurance programme

CMFAS CGIWork Injury Compensation Insurance

Why is work injury compensation described as one of the most important components of a commercial insurance programme?

A Because it is the cheapest cover an employer can buy, so every firm can afford it
B Because it also covers damage to the employer's premises caused by workers
C Because it protects third parties, such as visitors, rather than the employer's own staff
D Because the exposure is every employee, every working day, and liability is largely automatic

Show the answer and explanation

Answer: D. Because the exposure is every employee, every working day, and liability is largely automatic

The cover is one of the most important and often legally compulsory components because the exposure is EVERY employee, EVERY working day, and the liability is largely automatic under the no-fault scheme.

Common mistake

Choosing cost or a third-party rationale, missing the pervasive, automatic employee exposure.

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CMFAS CGI Work Injury Compensation Insurance question: components of a commercial insurance programme

Answer: D. Because the exposure is every employee, every working day, and liability is largely automatic

Common mistake

Related CMFAS CGI questions

CMFAS CGI Work Injury Compensation Insurance question: components of a commercial insurance programme

Answer: D. Because the exposure is every employee, every working day, and liability is largely automatic

Common mistake

Related CMFAS CGI questions