Florida Insurance Licensing Practice Exam

For a furniture manufacturing business, what is required to have liability coverage for serving free beer at a company picnic?

1. No special requirements, the CGL policy will cover

2. An additional liquor liability form

3. An 'extension of coverage' endorsement

4. It is impossible to cover under CGL

The correct answer is: No special requirements, the CGL policy will cover

Liability coverage will typically cover any damages or injuries that occur on the business premises, including at a company picnic. Therefore, no special requirements are needed in order to have liability coverage for serving free beer at a company picnic. Options B and C may refer to additional coverage options, but they are not required for general liability coverage. Option D is incorrect, as liability coverage can indeed cover incidents related to serving alcohol at a company event. Overall, the most important factor is to ensure that the business has sufficient liability coverage in place.