James, a landlord, was negligent in repairing the broken step. Lily, the tenant, tripped and broke her ankle. She sued James for his negligence and demanded a sum of $3,457.82. Which of the following types of insurance would have covered the risk for James?

Question

Quizplus · Accepted Answer

Liability insurance covers the risk of negligence on the part of the insured that may cause bodily injury or property damage to a third party. In this case, James was negligent in repairing the broken step, which caused Lily's injury. Liability insurance would cover the cost of the settlement demanded by Lily. Homeowner's insurance and property insurance cover damages to the insured's property, disability insurance covers the loss of income due to disability, and health insurance covers medical expenses, but none of these cover the liability of an insured for someone else's injury or property damage.

James, a Landlord, Was Negligent in Repairing the Broken Step