Certified Meeting Professional (CMP) Practice Exam

What does commercial general liability insurance cover?

1. Loss of revenue due to event cancellation

2. Bodily injury and property damage

3. Workplace injuries of event staff

4. Intellectual property disputes

The correct answer is: Bodily injury and property damage

Commercial general liability insurance is specifically designed to protect businesses from financial losses related to claims of bodily injury and property damage that occur on their premises or as a result of their operations. This type of insurance is essential for event planners and organizations hosting events, as it helps cover the costs associated with legal defense and settlements if someone is injured or if property is damaged during the event. For instance, if a guest at an event accidentally slips and falls, resulting in an injury that leads to a lawsuit, the commercial general liability insurance would provide coverage for legal expenses and any damages awarded to the injured party. This coverage ensures that businesses can mitigate risks associated with hosting events, offering financial security and peace of mind against potential claims. The other options cover different aspects of risk management but are not included under general liability insurance. Event cancellation insurance specifically addresses the loss of revenue due to unforeseen cancellations, while workers' compensation provides coverage for workplace injuries. Intellectual property insurance would cover disputes related to intellectual property rights, but that too falls outside the realm of general liability coverage.