CPB (Certified Professional Biller) Certification Practice Exam

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Enhance your chances of passing the CPB Certification Exam with our comprehensive quiz. Utilize multiple choice questions and detailed explanations to prepare effectively for your exam.

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Which insurance type protects business assets and covers the cost of lawsuits due to false advertising?

Bonding Insurance
Business Liability Insurance
Malpractice Insurance
Property Insurance

The correct answer is: Business Liability Insurance

Business Liability Insurance is specifically designed to protect business assets in the event of lawsuits that arise from various claims, including false advertising. When a business makes statements about its products or services, it can run the risk of being accused of misleading advertisements or defamation, which can lead to lawsuits. Business Liability Insurance provides coverage for legal costs, settlements, and judgments in such situations, ensuring that the business is financially protected against claims related to its advertising practices. Bonding Insurance primarily focuses on guaranteeing that a business or contractor fulfills their contractual obligations, while Malpractice Insurance is usually intended for professionals in fields such as healthcare, protecting them against claims of negligence. Property Insurance covers physical assets and property against damage or theft, but it does not extend to legal liability risks associated with advertising or other potential business claims. Therefore, Business Liability Insurance is the appropriate coverage for protecting against the specific risks mentioned in the question.