Which loss is covered under Forgery Or Alteration?

• A. Loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money.
• B. Damage from flood to the insured's building.
• C. Loss of property due to a volcanic eruption.
• D. Liability for bodily injury

Answer: (A)

Forgery or Alteration covers losses that come from the forgery or alteration of negotiable instruments—things like checks, drafts, promissory notes, or other instruments that promise payment of money. If someone forges your signature on a check or alters one of these instruments and you incur a monetary loss, this coverage would apply up to the policy limit (including related bank charges in some cases). The other options describe perils that are not about forged or altered instruments: flood damage, volcanic eruption damage, and bodily injury liability are covered under different parts of a policy, not under Forgery or Alteration. So the best match is the description of losses from forgery or alteration of negotiable instruments.