Question

J. Darby's Local Bar is being sued for selling alcohol to minors who then vandalized several houses. Fortunately for J. Darby's, it has __________________ to help cover the costs of the lawsuit.

Option 1: Liability Insurance
Option 2: Security Deposits
Option 3: Contingency Reserves
Option 4: Tax Deductions

Answer 1

J. Darby's Local Bar has Liability Insurance to help cover the costs of the lawsuit.

Step-by-step explanation:

J. Darby's Local Bar has Liability Insurance to help cover the costs of the lawsuit. Liability insurance provides coverage for legal liability arising from accidents, injuries, or damages caused by the insured party. In this case, the bar is being sued for selling alcohol to minors who vandalized several houses, and the liability insurance can help cover the costs of the lawsuit.