National Association of Boards of Long Term Care Administrator (NAB) CORE Practice Exam

Which type of insurance would cover an injury sustained by a guest in a healthcare organization's office?

1. General liability insurance

2. Property insurance

3. Professional liability insurance

4. Workers' compensation insurance

The correct answer is: General liability insurance

General liability insurance is designed to protect healthcare organizations against claims made by third parties for bodily injury or property damage that occurs on the premises. When a guest sustains an injury while visiting a healthcare organization, general liability insurance provides coverage for the associated costs, such as medical expenses and legal fees, that may arise if the guest decides to file a claim. This type of insurance is essential in any business setting but is particularly crucial in healthcare, where the proximity of patients, visitors, and staff increases the likelihood of accidents. By covering these potential liabilities, general liability insurance allows healthcare organizations to operate with greater financial security and peace of mind, ensuring they can address any incidents that could affect guests in their facilities. Other types of insurance, such as property insurance, would only cover damages to physical assets, while professional liability insurance focuses on claims relating to the services provided by healthcare professionals. Workers' compensation insurance, on the other hand, specifically addresses injuries sustained by employees in the workplace, not guests.