Which of the following is NOT an example of a risk covered under professional liability insurance?
A) Several years ago, McDonald's restaurant was sued when a woman burned herself on hot coffee she spilled in her lap.
B) A woman sued her hair salon after a color treatment left her with bald, burned spots on her scalp. The dye, usually safe, had been mixed incorrectly by the colorist.
C) An interior designer ordered four special-order chairs at $7,000 each. Unfortunately, she put the wrong product code on the order form and the wrong chairs were manufactured.
D) A woman received electrical burns when a lamp malfunctioned. She had just picked up the lamp from the electrician's shop, where she had had the lamp rewired.
E) A bridge collapsed, killing a family of four. It was discovered that the contractor had used the wrong-sized bolts to hold the bridge together.
Answer: A
Explanation: A) This is an example of a risk covered under product liability insurance. Professional liability insurance protects the business when someone claims its professional services caused injury or harm.
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Which of the following statements about the use of a separate sales force to handle key accounts is true?
A. This is a relatively low cost approach for making sure someone services the company's largest customers high in the organizational hierarchy B. National sales force members are always treated as equal to the company's regular sales force C. The national sales force typically consists of the company's most experienced and talented salespeople D. The national sales force is typically overworked because of the demands placed on it by its major accounts E. In many companies, the regular sales force serves as a motivator to the national sales force
Operating activities involve the acquiring and selling of goods and services for cash or on account
a. True b. False Indicate whether the statement is true or false