P&C Exam Practice: Who Pays When an Insured Damages Someone Else’s Property?

P&C Exam Practice Question: Property Damage Liability

A customer slips in an insurance agency lobby after a spill was left unattended. The customer’s laptop is damaged in the fall. The agency is accused of negligence. Which coverage is most likely designed to respond to the customer’s damaged laptop?

A. Collision coverage B. Commercial general liability coverage C. Workers’ compensation coverage D. Inland marine coverage

Correct answer: B — Commercial general liability coverage.

Why B is correct Commercial general liability coverage may respond to third-party bodily injury or property damage caused by an occurrence, subject to the policy terms, exclusions, and limits. In this scenario, the customer is a third party and the alleged negligence led to accidental property damage.

Why the other answers are wrong Collision coverage applies to covered vehicles, not a customer’s laptop. Workers’ compensation generally addresses job-related injuries to employees, not customer property damage. Inland marine can cover certain property exposures, but it is not the standard liability coverage for a customer’s negligence claim against the agency.

Exam tip: Look for the trigger words On the exam, separate four details quickly: who suffered the loss, what type of loss occurred, whether the act was accidental, and which policy is designed for that exposure. Third-party property damage plus alleged negligence should point you toward liability coverage.

This is general guidance — not legal or coverage advice. Consult a licensed professional.

Quick check: If the agency intentionally damaged the laptop, would the analysis be the same? Usually not. Intentional acts and expected or intended damage are common exam traps, so read the facts carefully before choosing an answer.

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