Question

Which of the following is true of the Business owners Contracts?

a. The eligibility rules are more stringent than those for the CPP.
b. It covers only personal business property of the insured.
c. It allows the insured to have full control over which coverages will be included in the contract.
d. It is designed only for large businesses.

Answer 1

The accurate answer is that Business owners' Contracts allow the insured to dictate what coverages are included. These contracts are tied to the ownership of property, which is essential for a business's ability to operate and enter into contracts.

Step-by-step explanation:

The correct answer to the student's question about Business owners' Contracts is option (c): It allows the insured to have full control over which coverages will be included in the contract. This type of contract is generally used in the context of business insurance, where the property includes items such as the physical assets of a business, intellectual property, and the training that the individuals within the firm have undergone. Owning property is a prerequisite for entering into contracts because the property serves as the basis for these business interactions and transactions. Hence, individuals or firms need to own the property to enter into a contract related to their business, which helps ensure their livelihood is protected.