Certified Meeting Professional (CMP) Practice Exam

What should be added to an insurance policy for charter buses or boats?

1. Workers compensation

2. Commercial auto insurance

3. Additional insured status

4. General liability coverage

The correct answer is: Additional insured status

The most appropriate addition to an insurance policy for charter buses or boats is additional insured status. This is crucial because it extends the coverage of the policyholder to include other parties, such as the charter company or event organizers, providing them with protection in the event of a claim related to the chartered service. This ensures that if an incident occurs, such as an accident involving the chartered bus or boat, the additional insureds can benefit from the insurance coverage, which helps mitigate financial risk and responsibility. The other types of insurance, while important in their own contexts, do not specifically address the need to extend coverage to other parties involved in the event or chartering service. Workers' compensation applies to employee-related injuries and would not cover liability related to the use of charter vehicles or vessels. Commercial auto insurance focuses on the vehicles themselves rather than providing liability coverage to other parties. General liability coverage is essential but may not cover specific liabilities created by chartering services unless additional insured status is explicitly included. Thus, additional insured status is a critical component for protecting everyone involved in the operation and use of charter services.