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Insurance · Commercial General Liability

What is 'negligence' and what are its basic elements in a liability claim?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

Failure to exercise reasonable care, resulting in harm — its elements are duty, breach of duty, causation, and damages; all four must be present for a negligence claim

  1. A An intentional crime
  2. B A government regulation
  3. C A type of insurance policy
  4. D Failure to exercise reasonable care, resulting in harm — its elements are duty, breach of duty, causation, and damages; all four must be present for a negligence claim

Why this is the answer

Negligence: The failure to exercise the REASONABLE CARE that a prudent person would under similar circumstances, resulting in harm to another. FOUR ELEMENTS (all required): (1) DUTY — the defendant owed a legal duty of care to the plaintiff; (2) BREACH — the defendant breached that duty (failed to act with reasonable care); (3) CAUSATION — the breach actually and proximately CAUSED the harm; (4) DAMAGES — the plaintiff suffered actual harm/loss; ALL FOUR must be proven for a successful negligence claim.

Defenses: comparative/contributory negligence (the plaintiff's own fault reduces or bars recovery); assumption of risk.

Comparative negligence: damages reduced by the plaintiff's percentage of fault.

Liability insurance: Responds to negligence claims (defense and damages); negligence is the basis of most liability claims — understanding the four elements (duty, breach, causation, damages) is fundamental casualty/liability exam content, as liability coverage exists primarily to respond to negligence claims against the insured.

Source: Casualty Insurance — Liability, Elements of Negligence

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About this topic: Commercial General Liability

Commercial general liability questions cover bodily injury and property damage liability, personal and advertising injury, medical payments, occurrence versus claims-made forms, and the standard exclusions. This is one of 13 Casualty Insurance questions on commercial general liability, each with a full explanation on a single study page.

New to this exam? Our Insurance exam guide explains the format, scoring, and how to prepare.

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