Test Your Insurance IQ: 10 Questions Every Business Owner Should Answer

Think your business is fully protected? Take our quick business insurance pop quiz to find out if your company is protected against today's biggest risks, like liability claims, property damage, cyber attacks, and employee disputes. 

Whether you're a small business owner or contractor, understanding your coverage is the first step in protecting your assets and your bottom line. This interactive quiz will test your insurance knowledge, reveal common coverage gaps, and help you learn which policies every business should consider before disaster strikes.

Ready to see if you can ace it? Here are 10 must-know questions to help you expand your insurance knowledge and sharpen your risk management skills. 

1.If a customer gets food poisoning from your restaurant, which insurance policy could help cover the claim?

1. Workers Comp
2. General Liability
3. Property Insurance 

2. Your business doesn't need to carry workers' comp insurance if your employees work from home.

1. True
2. False

Note: Read all about insuring a remote workforce.

3. Cyber insurance is only necessary if you work in tech or healthcare.

1. True
2. False

Note: Read more about how a cyber insurance policy can protect your business.

4. If a natural disaster forces you to close your business for repairs, which coverage helps replace lost income?

1. Property Insurance
2. Business Interruption Insurance
3. Workers Comp

5. While driving their personal vehicle to a client meeting, your employee causes an accident. Whose policy applies?

1. Your company's commercial auto policy
2. The employee's personal auto policy

Note: Commercial auto insurance is required if vehicles are used for business purposes, regardless of whether the company, an employee, or a contractor owns them. Read about commercial auto insurance here.

6. Umbrella coverage replaces your primary coverage.

1. True
2. False

Note: Umbrella coverage extends, but does not replace, your coverage beyond standard limits. For example, if your business is fined more than what your general liability limit covers, umbrella coverage could kick in.

7. Which of these is a strong indicator that a worker is an employee (not an independent contractor)? 

1. They send you a monthly invoice
2. They use their own tools and determine how work will get done
3. You determine their work hours

8. If all your workers are correctly classified as independent contractors, which coverage are you typically NOT required to have?

1. Workers comp
2. General liability
3. Professional liability

Note: Read all about contractors versus independent contractors.

9. Which type of insurance helps protect your business in the event of a wrongful termination claim?

1. Workers Comp
2. Professional Liability 
3. Employment Practices Liability Insurance (EPLI)

Extra Credit: When's the last time you reviewed your insurance policies with an expert?

1. In the past 12 months
2. More than 12 months ago
3. I don't remember

Quiz Answers: 1. B,  2. B, 3. B, 4. B, 5. A, 6. B, 7. C, 8. A, 9. C, 10. A

If you aced this quiz, please accept our virtual high-five! If you learned something new today, excellent! Either way, our team is ready to help you build your strongest business yet. We can help you strengthen your insurance portfolio, identify and close coverage gaps, and protect your business from unexpected and often “invisible” risks. 

Book a Coverage Check HERE.

Sources: 

OpenAI. (2025, August 12). Response to “Expand on the angle of "Is Your Business Ready for a Pop Quiz? Test Your Insurance Knowledge”. ChatGPT.https://chat.openai.com