Property and Casualty Insurance Practice Exam

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Study for the Property and Casualty Insurance Exam. Utilize flashcards and multiple-choice questions with thorough explanations. Prepare with confidence and excel in your exam!

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Practice this question and more.

Which of the following injuries is covered under business liability coverage?

Slips and falls on the property
Malicious prosecution claims
Lost wages of employees
Property damage to client assets

The correct answer is: Malicious prosecution claims

Business liability coverage is designed to protect businesses from claims arising out of their operations, including those that involve bodily injury, property damage, and personal injury. Among the options presented, malicious prosecution claims fall under the personal injury aspect of liability coverage. These claims occur when someone is wrongfully subjected to legal action without proper grounds, meaning the business is being accused of causing harm through legal means. This type of coverage is essential for businesses as it helps protect them against significant legal and financial repercussions resulting from such wrongful actions. The other options do not apply as directly to business liability: slips and falls on the property tend to fall under general liability; lost wages of employees relate more to workers' compensation; and while property damage could be connected to liability, it is not a direct personal injury claim like malicious prosecution is.