MENU
Fudgylicious Inc is a manufacturer of confectionary based in the United Kingdom. In one of its factories an employee has an accident during his shift which resulted in him breaking a leg and requiring surgery. Will the employer's Professional Indemnity insurance cover the cost of the operation?
Suggested Answer: D
Get Premium L5M2 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
The correct answer is 'no-this is not the purpose of insurance'. The question asks if Professional Indemnity Insurance can be claimed on for this- no it can't- that's not its purpose. It would be Employer's Liability insurance which could be claimed on. This question tests your understanding of the different types of insurance. There is a very similar question in the exam- so remember accidents at work are claimed against Employer's Liability insurance NOT Professional Indemnity insurance - see p.96 for more information on different types of insurance
31 comments · newest first
AL
Alaine
11 months ago
But isn’t it common for employers to cover medical expenses?
TH
Thora
11 months ago
Definitely option D, that’s not what insurance is for.
YV
Yvonne
12 months ago
Wait, so the insurance doesn’t cover medical costs? That’s surprising!
DI
Dierdre
12 months ago
I disagree, it should be covered since it happened at work!
CA
Casandra
1 year ago
I think it’s option C, just lost wages covered.
SH
Sherell
1 year ago
I thought that since the accident happened at work, the employer might have some responsibility, but I can't remember if PI insurance is the right type for this situation.
NI
Nieves
1 year ago
I feel like there was a practice question similar to this, and it mentioned that PI insurance doesn’t cover medical costs. So, I think D could be right.
GE
Gerald
1 year ago
I’m not entirely sure, but I think we covered that workplace injuries might be covered under different types of insurance, like Employer's Liability, not Professional Indemnity.
AR
Arminda
1 year ago
I remember discussing that Professional Indemnity insurance typically covers professional mistakes, not medical expenses. So, I'm leaning towards option C.
SI
Sina
1 year ago
This is a tricky one. I'll need to really analyze the wording of the question and the answer choices to figure out the right approach. Gotta be careful not to overthink it.
BR
Breana
1 year ago
Hmm, I'm a bit unsure about this one. The question doesn't specify the type of insurance, so I'll have to think through the different policies and what they typically cover.
FI
Fidelia
1 year ago
This seems like a straightforward question about the scope of the company's insurance coverage. I'll need to carefully read the details to determine if the medical expenses would be covered.
JO
Jody
1 year ago
Okay, I think I've got a strategy here. I'll need to consider whether the accident occurred during work hours, on company premises, and whether the insurance policy includes medical expenses or just lost wages.
AR
Arlie
2 years ago
Option D is the way to go, no doubt. This has nothing to do with the purpose of Professional Indemnity insurance. If I were the employee, I'd be hitting up the company's HR department for that workers' comp coverage!
TI
Tiera
2 years ago
It's important for employees to know their rights and options in situations like this.
CA
Cathrine
2 years ago
I agree, the employee should definitely look into workers' comp for coverage.
NA
Nakisha
2 years ago
Option D is correct. Professional Indemnity insurance is not meant to cover medical expenses.
OR
Orville
2 years ago
I'm going with C as well. Seems pretty straightforward - Professional Indemnity is for protecting the company from claims, not employee injuries. Unless the employee was suing the company, this wouldn't be covered.
AR
Arlette
2 years ago
I'm going with C as well. Seems pretty straightforward - Professional Indemnity is for protecting the company from claims, not employee injuries. Unless the employee was suing the company, this wouldn't be covered.
TA
Talia
2 years ago
C) no- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work
AV
Avery
2 years ago
B) yes- the insurance can be used as the accident occurred on the company's premises
MA
Marion
2 years ago
A) yes- the insurance will cover all medical expenses as the accident occurred during his working hours
LI
Lizette
2 years ago
B) yes- the insurance can be used as the accident occurred on the company's premises
CA
Carma
2 years ago
C) no- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work
AL
Alfred
2 years ago
Haha, Fudgylicious Inc. sounds like a fun place to work! But in all seriousness, I agree with Berry - the insurance won't cover the surgery, only lost wages if the employee can't work. That's what workers' comp is for.
BE
Berry
2 years ago
I'd say option C is the correct answer. Professional Indemnity insurance is meant to cover liability, not employee medical expenses. The company should have separate workers' compensation coverage for that.
VI
Viva
2 years ago
D) no- this is not the purpose of insurance
NU
Nu
2 years ago
C) no- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work
GL
Glenn
2 years ago
B) yes- the insurance can be used as the accident occurred on the company's premises
NI
Nichelle
2 years ago
A) yes- the insurance will cover all medical expenses as the accident occurred during his working hours
SY
Sylvie
2 years ago
A) yes- the insurance will cover all medical expenses as the accident occurred during his working hours