Crime, Bonds, Professional Liability, Umbrella and Excess
Special liability items test employee dishonesty, theft, robbery, burglary, surety, fidelity, E&O, D&O, malpractice, EPLI, cyber, liquor, umbrella, and excess coverage.
How to study Property & Casualty
Treat every P&C item as an exposure map: identify the property or liability risk, policy form, covered cause, provision, and state-law rule.
Core concepts
Concept 1
Crime coverage distinguishes employee dishonesty, theft, robbery, burglary, forgery, and mysterious disappearance.
Exam cue: For crime, identify who took what and how.
Concept 2
Surety bonds involve three parties and are not the same as insurance indemnifying the insured's own loss.
Exam cue: For bonds, name principal, obligee, and surety.
Concept 3
Professional, umbrella, and excess coverage solve gaps or higher-limit needs for specific liability exposures.
Exam cue: For umbrella or excess, check underlying limits and covered exposures.
Risk pitfalls and guardrails
Confusing robbery with burglary.
Guardrail: Avoid answers that ignore exclusions, claim duties, valuation method, insured status, or state-specific cancellation and claim rules.
Treating surety bonds as two-party insurance contracts.
Guardrail: Avoid answers that ignore exclusions, claim duties, valuation method, insured status, or state-specific cancellation and claim rules.
Assuming umbrella coverage follows every excluded underlying loss.
Guardrail: Avoid answers that ignore exclusions, claim duties, valuation method, insured status, or state-specific cancellation and claim rules.
Memory anchors
Employee Dishonesty
Employee dishonesty covers certain dishonest acts by employees.
Theft
Theft is unlawful taking of property.
Robbery
Robbery involves taking property from a person by force or threat.
Burglary
Burglary involves unlawful entry or exit with visible signs under many forms.
Forgery
Forgery coverage addresses covered fraudulent signatures or alteration.
Surety Bond
A surety bond involves principal, obligee, and surety.
Fidelity Bond
A fidelity bond protects against employee dishonesty.
E&O
Errors and omissions covers certain professional negligence claims.
Umbrella Liability
Umbrella liability provides higher limits and may provide broader coverage than underlying policies.
Excess Liability
Excess liability provides additional limits over underlying coverage.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A bookkeeper diverts company receipts into a personal account over several months. Which commercial crime coverage is most relevant?
A stranger unlawfully takes an unattended company laptop without using force or making threats. Which crime term best describes the act?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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