Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

Question: 1 / 400

What is typically included in a broad form policy?

Very limited coverage for common risks

A higher range of covered perils than basic policies

A broad form policy is designed to provide a more extensive range of coverage compared to basic policies. This type of policy usually encompasses a higher number of perils, which are specific causes of loss or damage, providing greater protection to the insured. For example, while basic policies might only cover the most common and straightforward risks, broad form policies tend to include additional perils, giving policyholders peace of mind knowing that they are covered against a wider variety of potential issues.

This expanded coverage is crucial for individuals or businesses seeking to mitigate their risk exposure effectively. As such, broad form policies are often more suitable for those with greater asset value or higher operational risks, as they reflect the higher level of protection required against diverse threats.

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A focus exclusively on liability coverage

Strictly basic requirements for coverage

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