PADI Divemaster Certification Practice Exam

What is one reason why you should carry professional liability insurance?

1. To cover costs of planned future dives

2. To pay for personal diving equipment

3. To protect against legal costs if named in a lawsuit

4. To provide coverage for dive shops only

The correct answer is: To protect against legal costs if named in a lawsuit

Carrying professional liability insurance is essential for anyone working in a capacity that involves potential legal exposure, such as diving instructors or divemasters. One primary reason for this is that it helps protect against legal costs if an individual is named in a lawsuit. Should an incident occur that leads to a claim of negligence or other legal challenges, the costs of defending oneself in court can be substantial. Liability insurance can cover these legal expenses, as well as any settlements or judgments that may arise from the situation, thereby providing peace of mind and financial protection while working in a profession where the risks can be significant. The other reasons presented do not align with the purpose of professional liability insurance. It is not intended to cover specific costs for planned future dives, nor does it provide coverage for personal diving equipment. Additionally, while dive shops may carry their own insurance, professional liability insurance is aimed at protecting individuals in the diving profession rather than solely covering dive shops.