Registered Insurance Brokers of Ontario (RIBO) Practice Exam

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Prepare for the Registered Insurance Brokers of Ontario Test. Study with comprehensive flashcards and multiple choice questions, each question provides hints and detailed explanations. Ace your exam with confidence!

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What type of insurance policy typically protects against business interruption?

General liability insurance
Property insurance
Business interruption insurance
Health insurance

The correct answer is: Business interruption insurance

The correct answer is business interruption insurance, as this type of policy is specifically designed to provide coverage for a business's lost income and other expenses when it is unable to operate due to a covered event, such as a fire or natural disaster. This insurance is crucial for businesses, as it helps them maintain cash flow and meet financial obligations while they recover from an incident that disrupts normal operations. Other types of insurance mentioned, such as general liability insurance and property insurance, serve different purposes. General liability insurance protects against legal liabilities arising from injuries or damages to third parties, while property insurance covers physical assets and structures but does not address the loss of income during an interruption. Health insurance, on the other hand, is focused on covering medical expenses for individuals and does not pertain to business operations. Thus, business interruption insurance is essential for businesses looking to mitigate the risks associated with operational disruptions.