Alabama Insurance Adjuster Practice Exam

Which type of insurance would best cover a shipping service like Anna's Rare Books?

1. General liability insurance

2. Inland Marine insurance

3. Homeowner's insurance

4. Commercial auto insurance

The correct answer is: Inland Marine insurance

Inland Marine insurance is specifically designed to cover goods while they are in transit, as well as certain types of movable property. For a shipping service like Anna's Rare Books, this type of insurance is particularly relevant because it protects against risks associated with transporting books and other rare items. It caters to the needs of businesses that deal with goods that are typically transported over land, making it an ideal fit for a shipping service. General liability insurance primarily protects against claims of bodily injury or property damage arising from business operations, which does not specifically address the unique risks involved in shipping goods. Homeowner's insurance is intended for personal property within a residential setting and typically excludes coverage for a business operated from home, particularly for items being transported or shipped. Commercial auto insurance covers vehicles used for business purposes, but does not offer coverage for the goods being transported. Therefore, considering the nature of Anna's Rare Books and its shipping operations, Inland Marine insurance provides the most appropriate and comprehensive coverage.