Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

If a pedestrian slips and falls in front of a business and the mall owner is responsible for maintenance, what is the coverage status?

1. COVERED

2. NOT COVERED

3. PARTIALLY COVERED

4. CONDITIONAL COVERAGE

The correct answer is: COVERED

When a pedestrian slips and falls in front of a business, the coverage status hinges on the responsibilities assigned to property owners regarding maintenance and safety. In this scenario, since the mall owner is responsible for maintenance, there is an expectation that they maintain a safe environment for all visitors, including pedestrians. Liability insurance typically covers incidents that result from negligence on the part of the property owner. If the mall owner failed to maintain a safe area—for instance, by not addressing icy sidewalks or other hazards—they may be liable for any injuries that occur as a direct result of that negligence. Given this context, the accident involving the pedestrian falls within the ambit of general liability coverage, making it covered under the mall owner's insurance policy. In this situation, the correct answer emphasizes the responsibility of the property owner to ensure the safety of visitors on their property, reinforcing the principle that liability insurance is designed to protect against claims arising from injuries due to negligence.