Registered Insurance Brokers of Ontario (RIBO) Practice Exam

Which of the following situations would NOT be considered personal liability under a Homeowners Comprehensive policy?

1. Injuring a visitor while not applying due caution

2. Accidentally damaging a neighbor’s property

3. Breaking someone else's property while playing

4. Loss of income due to business liability claims

The correct answer is: Loss of income due to business liability claims

The situation involving the loss of income due to business liability claims would indeed not be considered personal liability under a Homeowners Comprehensive policy. Personal liability coverage is intended to protect homeowners from claims made against them for bodily injury or property damage to others that occur on their premises or as a result of their personal activities. In contrast, business activities typically fall outside the scope of personal coverage provided by a homeowners policy. If someone is engaged in a business or receives income from activities that result in liability claims, those would usually require a separate business liability insurance policy to address the risks associated with business operations. The other scenarios relate directly to personal conduct and interactions that are covered under the personal liability section, such as injuring a visitor while engaging in personal activities or accidently damaging a neighbor's property, which are commonly included in personal liability coverage. Additionally, breaking someone else's property while playing falls under similar personal activities that can lead to claims for damages. Therefore, loss of income related to business activities is categorically different and not typically included in the coverage provided by a homeowners policy.