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CTP · Question #883

(Topic 9) Company M operates a grocery distribution business on Main Street. As part of its business continuity plan, Company M intends to purchase insurance to cover the facility lease for its Main…

The correct answer is B. Business interruption insurance. See the full explanation below for the reasoning.

Question

  • (Topic 9)

Company M operates a grocery distribution business on Main Street. As part of its business continuity plan, Company M intends to purchase insurance to cover the facility lease for its Main Street warehouse in the event it cannot operate for a period of time. What type of coverage should Company M purchase?

Options

  • ACost reimbursement insurance
  • BBusiness interruption insurance
  • CGeneral liability insurance
  • DFiduciary insurance

How the community answered

(42 responses)
  • A
    7% (3)
  • B
    79% (33)
  • C
    2% (1)
  • D
    12% (5)

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