Florida Insurance Claims Adjuster License Practice Exam

The minimum basic liability limit for a Boiler and Machinery policy is:

1. $500,000

2. $1,000,000

3. $250,000

4. $100,000

The correct answer is: $500,000

A Boiler and Machinery policy provides coverage for accidents or breakdowns of boilers, heating systems, and machinery in a commercial setting. The minimum basic liability limit for this type of policy is typically set at $500,000. This amount is necessary in order to effectively cover potential damages that may result from a boiler or machinery malfunction. Option B is incorrect because it suggests a higher limit, which would increase the cost of the policy. Option C and D are also incorrect because they suggest lower limits that may not be enough to cover potential damages and legal costs.