Which of the following would immediately let you know that a business has been ignoring the need to manage tort risk?
A) instituting training programs
B) loss of insurance coverage
C) loss of brand recognition
D) instituting hiring policies

Question

Quizplus · Accepted Answer

Loss of insurance coverage is a clear indicator that a business has been ignoring the need to manage tort risk. Insurance companies will typically revoke coverage if they believe that a business has not taken adequate steps to mitigate the risk of liability claims. Instituting training programs and hiring policies, on the other hand, indicate that the business is taking steps to address tort risk. Loss of brand recognition may be a result of tort risk mismanagement, but it is not necessarily an immediate indicator.

Which of the Following Would Immediately Let You Know That