West Virginia Property and Casualty Licensing Practice Exam

Under what circumstance is a customer injury covered by liability insurance?

1. When the customer is injured while trespassing

2. When the customer is injured during a fire drill

3. When the customer is injured while shopping in the insured's store

4. When the customer fails to follow safety protocols

The correct answer is: When the customer is injured while shopping in the insured's store

Liability insurance provides coverage for bodily injury or property damage that occurs as a result of the insured's operations or premises. In this context, when a customer is injured while shopping in the insured's store, it typically falls under the insured's responsibility to ensure a safe environment for customers. This scenario aligns with the principle of premises liability, where business owners are expected to maintain their property in a reasonably safe condition for patrons. If a customer sustains an injury due to unsafe conditions present in the store—such as wet floors, poorly arranged merchandise, or any other hazards—the liability insurance would cover the medical costs and any legal claims arising from that injury. In contrast, the other scenarios do not meet the coverage criteria. For instance, injuries occurring while trespassing generally do not fall under liability coverage since the trespasser does not have legal permission to be on the property, limiting the insured's liability. Similarly, if a customer is injured during a fire drill, it's typically assumed that the drill is designed for safety and does not create liability for injuries prompted by the drill itself. Lastly, if a customer fails to follow established safety protocols, liability insurance may not cover the resulting injuries, as they could be deemed responsible for their own safety in that context.