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List two types of insurance you would expect Marco’s business to have - Leaving Cert Business - Question A - 2020
Question A
List two types of insurance you would expect Marco’s business to have. (i) Marco must abide by the insurance principles of Indemnity and Utmost Good Faith. Explain ... show full transcript
Worked Solution & Example Answer:List two types of insurance you would expect Marco’s business to have - Leaving Cert Business - Question A - 2020
Step 1
List two types of insurance you would expect Marco’s business to have.
Answer
- Public Liability Insurance: This protects against claims from visitors or customers who may be injured or suffer property damage while on the premises.
- Employers Liability Insurance: This is necessary to cover claims made by employees who may be injured or become ill due to their work.
Step 2
Marco must abide by the insurance principles of Indemnity and Utmost Good Faith. Explain one of these principles.
Answer
Indemnity: This principle states that an insured person cannot profit from a loss. The purpose of indemnity is to restore the insured to the same financial position they were in before the loss occurred, without allowing them to gain financially from the situation.