West Virginia Property and Casualty Licensing Practice Exam

Which policy type would respond to cover goods damaged in an accident involving a truck?

1. Business interruption policy

2. An inland marine motor truck cargo policy

3. A worker's compensation policy

4. A general liability policy

The correct answer is: An inland marine motor truck cargo policy

The correct choice is the inland marine motor truck cargo policy because this type of insurance is specifically designed to cover goods while they are in transit over land, particularly by truck. This policy provides protection against physical loss or damage to goods being transported, whether due to accidents, theft, or other unforeseen events. It is particularly relevant for businesses that rely on the transportation of goods, as it ensures coverage for the cargo being carried, which is critical for maintaining their operations and financial stability. In contrast, a business interruption policy generally covers loss of income due to a business being unable to operate, typically following physical damage to the business premises rather than to the goods being transported. A worker's compensation policy is intended to cover employee injuries and does not apply to property damage in transit. Lastly, a general liability policy provides coverage for third-party liability claims but does not specifically cover damage to goods transported by vehicles. Thus, the inland marine motor truck cargo policy is uniquely suited to address the specifics of goods damaged in transit by truck accidents.