Fred, a small business owner, has a $3 million personal liability policy. This m

Question

Fred, a small business owner, has a $3 million personal liability policy. This means that

Fred’s liability can never exceed $3 million

Fred can borrow up to $3 million against the value of the policy

Fred’s business is worth $3 million

Fred is covered for liability claims up to $3 million, but may be required to pay for any liability in excess of that amount

Fred’s liability can never exceed $3 million

Fred can borrow up to $3 million against the value of the policy

Fred’s business is worth $3 million

Fred is covered for liability claims up to $3 million, but may be required to pay for any liability in excess of that amount

Explanation / Answer

Solution:

Fred, a small business owner, has a $3 million personal liability policy. This means that "Fred is covered for liability claims up to $3 million, but may be required to pay for any liability in excess of that amount.

Personal liability policy are the insurance policies that provides coverage of the amount upto limits of policies amount as per terms of the policy agreement , So if the liability exceeds this limit a person wont be entitled to claim for such extra liabilites and has to bear it from his own disposal.

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