Arizona Adjuster Practice Exam

Which of the following is classified as a type of commercial insurance policy?

1. Health insurance for employees

2. Property insurance for a restaurant

3. Personal auto insurance

4. Workers' compensation insurance

The correct answer is: Property insurance for a restaurant

The classification of insurance policies into commercial or personal categories is important for understanding the nature of coverage and the types of businesses or individuals they serve. The correct answer focuses on property insurance for a restaurant. Property insurance for a restaurant is considered a type of commercial insurance policy because it provides coverage for business-related assets and liabilities. This includes protection for the physical building, equipment, inventory, and any financial losses due to damage from events such as fire, theft, or natural disasters. Since the policy is designed specifically for a business operation, it aligns with the needs of commercial enterprises, which require distinct coverage compared to personal insurance. In contrast, health insurance for employees, although it is a vital component of employee benefits, is primarily aimed at covering personal health-related expenses. Personal auto insurance is tailored for individual vehicle owners and is not offered to businesses as commercial auto insurance would be. Workers' compensation insurance, while crucial for businesses, is often categorized separately, focusing on coverage for work-related injuries rather than property protection. Thus, property insurance for a restaurant distinctly falls within the realm of commercial insurance policies due to its focus on business assets and operational risks.