Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which business is most likely to contain special hazards?

1. Grocery stores

2. Service stations

3. Office buildings

4. Educational institutions

The correct answer is: Service stations

Service stations are most likely to contain special hazards due to the nature of their operations. These establishments typically deal with flammable materials, such as gasoline and diesel fuel, which are inherently hazardous and can pose significant risks of fire and explosion. Additionally, service stations often include facilities for mechanical repairs, which may involve the use of tools and chemicals that can also pose safety risks if not properly managed. This environment creates a higher potential for accidents, making it essential for service stations to implement rigorous safety protocols, proper storage facilities for hazardous materials, and effective training for employees to manage these risks. Consequently, the presence of these specialized hazards sets service stations apart from other options like grocery stores, office buildings, and educational institutions, which generally deal with less hazardous materials and have a lower risk profile when it comes to accidents or emergencies.