New York Insurance Exam Practice Question
Which type of insurance covers legal liability for bodily injury?
Correct Answer: A
Rationale: Liability insurance specifically addresses legal responsibilities for bodily injury caused to others, making it essential for individuals and businesses to protect against potential lawsuits. Property insurance, on the other hand, focuses on damage to physical assets rather than liability. Workers' compensation insurance covers employee injuries on the job but does not extend to third-party bodily injury claims. Business interruption insurance compensates for lost income due to disruptions but does not cover legal liabilities. Therefore, liability insurance is the only option that directly addresses legal liability for bodily injury.
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