Los Angeles Claims Adjuster Property and Causality Practice Exam

An insured in a commercial umbrella liability policy includes which of the following besides themselves?

1. The insured's financial advisor

2. The insured's spouse involved in business operations

3. The insured's accountant

4. The insured's friends providing assistance

The correct answer is: The insured's spouse involved in business operations

In a commercial umbrella liability policy, the definition of an insured extends beyond just the named individual or entity on the policy. This extension typically includes individuals who are closely related to the insured's business operations, such as a spouse who is actively engaged in those operations. When a spouse is involved in business activities, they are often considered a critical part of the operation and may have direct interactions and responsibilities within the business context. Their role can expose them to liability claims that could arise from the business operations, making it appropriate for them to be included in the umbrella policy's coverage. The other individuals mentioned, such as the financial advisor, accountant, or friends providing assistance, do not typically qualify as insureds under the policy because they are not integral to the day-to-day operations of the business. The policy is designed to cover those involved in the business, rather than external advisors or aides. Therefore, the inclusion of a spouse actively participating in business operations aligns with the policy's intent to protect those closely associated with the insured's business activities.