CIPS Exam L5M2 Topic 2 Question 46 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 46
Topic #: 2

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?

Ayes- the insurance will cover all medical expenses as the accident occurred during his working hours

Byes- the insurance can be used as the accident occurred on the company's premises

Cno- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work

Dno- this is not the purpose of insurance

Show Suggested Answer

Suggested Answer: D

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

by Quinn at Sep 18, 2024, 12:56 PM

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Arlie

26 days 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!

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Nakisha

14 days ago

Option D is correct. Professional Indemnity insurance is not meant to cover medical expenses.

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Orville

1 months 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.

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2 months 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.

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