Question

Janet is a property manager for a large mixed-use space. She wishes to purchase insurance coverage for her negligence and innocent mistakes. What type of insurance should she purchase?

a) Property insurance.

b) Liability insurance.

c) Renters insurance.

d) Title insurance.

Answer 1

b) Liability insurance

Janet should purchase liability insurance which covers negligence and innocent mistakes that result in legal responsibility for accidents causing injury to others or property damage.

Step-by-step explanation:

If Janet is a property manager looking to purchase insurance to protect herself from negligence and innocent mistakes, the type of insurance she should consider is b) Liability insurance. Liability insurance is designed to offer protection to individuals and businesses when they are found legally responsible for accidents that cause injury to others or damage to their property. While property insurance would cover damage to actual property and renters insurance would apply to tenants, liability insurance specifically addresses the financial consequences of one's actions or inactions that harm others legally. Title insurance, on the other hand, protects against issues with the legal ownership of the property.

Answer 2

Janet should purchase liability insurance to cover potential legal costs and payouts for negligence and innocent mistakes in her role as a property manager.

Step-by-step explanation:

Janet, as a property manager interested in protecting herself from the financial consequences of her professional negligence and innocent mistakes, should consider purchasing liability insurance. This type of insurance is specifically designed to cover legal costs and any resulting payouts for which the insured individual or business can be held legally liable. For instance, if a tenant were to sue Janet for negligence resulting in property damage or personal injury, her liability insurance would likely cover the associated costs.

Property insurance is generally intended to protect physical assets against damage from events like fire, theft, or natural disasters. Renters insurance is typically purchased by tenants to protect their personal property inside a rented space, and title insurance provides protection against disputes over property ownership. Therefore, the correct answer in this scenario is b) Liability insurance.