Arizona Adjuster Practice Exam

What type of injury is covered by the Medical Payments Coverage under a businessowners policy (BOP)?

1. A broken leg sustained by a customer who fell in the parking lot

2. A customer's personal property damage

3. Injuries to the insured's employees

4. Legal costs associated with customer falls

The correct answer is: A broken leg sustained by a customer who fell in the parking lot

Medical Payments Coverage under a businessowners policy (BOP) is designed to cover medical expenses for injuries that occur on the business premises, regardless of fault. This type of coverage is aimed specifically at providing prompt payment for medical costs incurred by individuals who suffer injuries on the insured's property, which encourages timely medical care and often mitigates the risk of lawsuits. A broken leg sustained by a customer who fell in the parking lot falls directly under this coverage. This scenario illustrates a situation where a visitor to the business suffers an accident on the premises, making it a clear case for Medical Payments Coverage, intended to cover necessary and reasonable medical expenses without the need for the injured party to prove negligence. The other scenarios presented do not qualify for this specific coverage. For example, personal property damage is not considered a bodily injury and therefore falls outside the realm of Medical Payments. Injuries sustained by employees are typically covered under workers' compensation insurance instead, since they are related to workplace incidents. Finally, while legal costs associated with injuries are important, they are not covered under Medical Payments; rather, they would typically be addressed under liability coverage or similar policies.