Question

7. Fast Pizza hires college students who drive their own cars to deliver pizzas to customers. Fast Pizza is concerned that the company may be liable for damages caused by company employees while they are driving their cars on company business. Identify a liability coverage form that Fast Pizza could purchase to deal with this exposure.

Answer 1

Business auto insurance

Step-by-step explanation:

Liability coverage is a type of insurance cover that protects the purchaser from liabilities from lawsuits and other similar claims.

The purchaser is protected when the claim comes under what the liability insurance covers.

In this case FasbPizza can use vicarious liability.

Business auto insurance cover is used to cover a company for use of cars, trucks, and other vehicles in the course of carrying out its business. It covers both liability and damage incurred.

Coverage is for cars owned by business, leased, and owned by employees but used for company business