In the context of liability, what type of insurance does the CIC U6 exam address?

The focus of the CIC U6 exam is on professional liability insurance. This type of insurance is designed to protect individuals and companies from claims made by clients for inadequate work or negligent actions that result in financial loss. It acknowledges that professionals, such as doctors, lawyers, and accountants, have a level of skill and training and therefore a duty to their clients; if this duty is breached, professional liability insurance can cover the legal costs and any settlements or judgments that arise from such claims.

While other types of liability insurance, such as general, commercial, and product liability, also play important roles in protecting businesses, they are not the specific emphasis of the CIC U6 exam, which concentrates more on the nuances of professional liability scenarios and claims relevant to professional services. Understanding this focus is crucial for professionals in fields where liability risks stem primarily from their specialized services and advice.