Property and Casualty Insurance Practice Exam

What is an example of a physical hazard?

1. A careless driver

2. A skateboard left on the steps

3. A theft of property

4. A storm causing damage

The correct answer is: A skateboard left on the steps

A skateboard left on the steps is an example of a physical hazard because it presents a tangible obstruction that can cause an injury or accident. Physical hazards refer to specific objects or conditions in the environment that can lead to injury or damage. In this case, the skateboard could cause someone to trip and fall, thereby creating a risk of physical harm. Other choices depict different types of risks: a careless driver represents a moral hazard, as it involves human behavior leading to a potential risk; a theft of property refers to a crime rather than a physical hazard; and a storm causing damage relates to peril, emphasizing the natural event's impact rather than a specific physical object creating risk.