Texas All Lines Adjuster Practice Test

Which type of insurance would include malpractice insurance?

1. Auto insurance

2. Professional liability coverage

3. Property insurance

4. Life insurance

The correct answer is: Professional liability coverage

Malpractice insurance falls under the category of professional liability coverage, which is designed to protect professionals from claims of negligence or failure to perform their professional duties. This type of insurance is essential for individuals in fields such as medicine, law, accounting, and other service-oriented professions where there is a duty of care owed to clients or patients. Professional liability insurance helps cover legal costs and damages that may arise from lawsuits or claims related to professional services. In contrast, other types of insurance serve different purposes. Auto insurance provides coverage for vehicles and liability arising from automobile accidents. Property insurance protects physical assets like homes or businesses from damage or loss. Life insurance offers financial protection to beneficiaries in the event of the policyholder's death. Therefore, the key is recognizing that malpractice insurance specifically addresses the risk of professional wrongdoing, making professional liability coverage the correct classification.