Liability risks can lurk in the quirkiest places; understanding them is key to protecting yourself. Ready to test your knowledge on the overlooked exposures that could lead to lawsuits? Just don't peek at the answers and explanations at the end. You might be liable for cheating. Good luck!

1. You can be sued if someone trips over a garden hose on your property and gets injured.

True or false?

2. You accidentally crash your drone into a neighbor's car. You’re financially liable for the damage.

True or false?

3. You host a neighborhood block party on your property. Your motto is the more, the merrier. But in this case, the bigger the party, the bigger the risk. Which of these events might you be liable for? 

   A. A guest tripping on a crack in your driveway and spraining their ankle 

   B. Someone spilling punch on your guest’s expensive designer handbag 

   C. A guest drinking too much alcohol and getting in a car crash on the way home 

   D. All of the above.

4. You may be liable if a used item you sold on an online marketplace causes an injury.

True or false?

5. Your teenager gets into a verbal dispute with a classmate online. They say some hurtful things and send an inappropriate image. The other teenager’s parents sue you for defamation, claiming the post hurt their child’s reputation. You can be held liable even though you didn’t have control of your teen’s social media accounts and had no knowledge of the incident.

True or false?

6. You agree to pet sit for your friend’s dog for a week. When you take the dog outside, the dog bites your neighbor. Your home policy covers this liability because homeowners insurance covers dog bites.

True or false?

7. Your toddler frees their stuffed whale by flushing it down the toilet. Water flows into the apartment below. You’re responsible for the damage and cleanup.

True or false?

8. Which one of these is an attractive nuisance liability?

A. A securely locked shed

B. A swimming pool without a fence

C. A flat, unfenced backyard with grass

D. A mailbox at the end of a driveway

9. A hurricane hits your city and topples your neighbor’s tree onto your driveway. Since it’s your neighbor’s tree, they’re liable for the cleanup. 

True or false?

1. True. You’re responsible for hazards that could cause injury, even to delivery personnel. Keep your walkways clean and free from tripping hazards. Your home or renters policy offers medical payments, which might be enough to prevent a lawsuit if the injury isn’t serious. If the injured party does sue you, your policy will defend you, but only to your policy’s liability limit. And that could be as low as $100,000. Court fees and settlements can quickly exceed this amount. Ask your agent about a personal umbrella policy, which extends your liability coverage to $1 million or more across your home and auto insurance.

2. True. Drone mishaps are your responsibility. Drones can injure people, pets and property. Your homeowners or renters policy might respond if you crash your drone and cause property damage or injure someone. But some home and renters policies exclude certain activities, like drone usage. And if you use your drone for business purposes, your home policy wouldn’t help. You’d need drone liability insurance for that. Tell your agent if you use drones.

3. D. Hosting events on your property creates various risks, from bodily injuries to property damage to intoxication. Your home or renters insurance covers liabilities that occur on your property, but it may not be enough. Call your agent if you’re hosting an event at home. Adding an event or liquor liability policy would expand your liability coverage for the block party date so you can celebrate worry-free.

4. True. Although it is rare, it happens. Let’s say you sell an old VCR to someone. Later, the VCR overheats and catches fire, damaging their living room. They sue you. People can sue you for anything. Even if a judge declares the claim meritless, you still have to spend money on a legal defense and filing fees, not to mention the time drag. Selling used items comes with some risk if they malfunction or injure the buyer. If you sell things occasionally, your homeowners or renters policy will cover liability claims. However, if reselling is a side gig or another source of income, your policy will exclude coverage because it’s a business. Call your agent about side businesses you operate out of your home. It’s better to be safe than face an exclusion when you need coverage the most.

5. True. Parents can be held liable for their children’s actions, including defamation. A judge or jury could find you liable, forcing you to pay for damages. Regardless of the findings, you’d need money to mount a defense. Your home policy would pay up to the limit, typically $100,000 for a standard policy. You’d pay out of pocket for anything beyond that.

6. False. Home and renters insurance cover dog bites for your dogs, but not other people’s dogs. It falls under the care, custody control (CCC) exclusion, which is standard in all home and renters policies. The CCC exclusion means if you're caring for something that doesn’t belong to you, your home insurance won’t cover damage to or caused by that property. Your friend’s pet is their property, and you have assumed care, custody or control of that property. When their dog bites your neighbor, it’s excluded under the CCC exclusion. Liability for pet sitting can get tricky. You could try to obtain temporary pet sitting coverage through gig work insurance. Or you can create a written contract with your friend explaining your agreement. Call your agent for information on this liability.

7. True. Unintentional damage caused by children is usually the responsibility of the parents. Your home or renters policy would respond to this accidental event.

8. B. A swimming pool without a fence is an attractive nuisance. An attractive nuisance is a property feature, like a swimming pool, trampoline, fountain or treehouse, that can lure children into dangerous situations. Children may not fully understand the risks of these property features. Having them on your property means you must use a higher duty of care to protect children from harm, even if they trespass onto your property. You are liable for attractive nuisances; that’s why insurance companies typically charge more for insurance if you have one.

9. False. In the case of fallen trees, the insurance policy of the damaged property pays for the repairs. Felled trees from events like excessive winds are considered an “act of God” or “force majeure” event. So if your neighbor’s tree falls onto your property, your policy will pay to remove it. Likewise, your neighbor’s policy will respond if your tree falls on their property. (You could try to prove that your neighbor intentionally neglected the tree, but you’d have to meet a legal threshold for proof of negligence. Also, court is a costly endeavor with no guarantees, not to mention you live next to the person you’re suing.) However, if a healthy tree randomly falls on your property, causes no damage and doesn’t block driveways or walkways, you’re in a tricky spot. Insurance might not respond since it’s not part of a wind or lightning strike claim, and no damage occurred. Insurance could consider it routine property maintenance.

That’s it! How’d you do? Liability risks exist in unexpected ways. But now that you know more, you can prepare. Call your insurance agent if you’re unclear on how your policy will respond to your liability. They’re happy to help add coverage if you need it.