Georgia Adjuster Practice Test

What is the function of “Money and Securities” coverage in a Businessowners policy?

1. To protect against physical damage to the building

2. To cover losses due to employee dishonesty

3. To protect against losses of money and securities used in business

4. To cover general liability of the business

The correct answer is: To protect against losses of money and securities used in business

The function of “Money and Securities” coverage in a Businessowners policy is to protect against losses of money and securities used in business. This coverage is specifically designed to address the risk of loss or theft of cash, negotiable instruments, and other monetary assets that businesses may readily use in their operations. It typically includes protection against various scenarios, such as theft on the premises, as well as events occurring off-site, which could include losses during transit or while in the care of employees. Understanding this type of coverage is crucial for business owners, as the financial stability of their operations can heavily depend on the safekeeping of cash and securities. Losses in this area can significantly impact liquidity and day-to-day functioning, hence the importance of having dedicated coverage to mitigate these risks effectively.