Louisiana Contractors License Practice Exam

What types of loss does Burglary and Theft Insurance cover?

1. Loss from vandalism only

2. Health-related claims

3. Loss from larceny, robbery, forgery, fraud, and vandalism

4. Injury claims against the business

The correct answer is: Loss from larceny, robbery, forgery, fraud, and vandalism

Burglary and Theft Insurance specifically covers financial losses that result from criminal acts involving the unlawful taking or destruction of property. This insurance is designed to provide protection against various crimes, including larceny, which is the theft of personal property, as well as robbery, which involves taking property through force or threat. Additionally, it encompasses losses related to forgery and fraud, both of which involve deceitful practices to gain something of value. Vandalism is also included under this type of insurance, as it pertains to the intentional destruction or damage of property, often related to theft or burglary incidents. The comprehensive nature of this coverage ensures that businesses are safeguarded against a spectrum of loss types that can occur due to criminal activity, positioning it as an essential part of risk management for entities concerned about property security. Other options do not align with the focus of Burglary and Theft Insurance; for instance, vandalism only is too narrow a definition, while health-related claims and injury claims against a business pertain to different types of insurance completely, such as liability insurance or health insurance.