Multiple choice

Employees Compensation Policy is a type of

  1. liability insurance

  2. fire insurance

  3. marine cargo insurance

  4. engineering insurance
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A Correct answer
Explanation

Liability insurance is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy.

The main types of liability insurance are given below:

  1. Employers' liability; required by law if you have employees – covers the cost of compensating employees who are injured at or become ill through work
  2. Public liability
  3. Product liability
  4. Professional indemnity
  5. Directors' and officers' liability 

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