DC DC Commercial Insurance 2

Question 1

A DC contractor's commercial general liability policy includes 'completed operations' coverage. This covers claims arising from:

Accepted Answer

Injuries or damage that occur after a project is finished and the contractor has left the site

Answer

Damage to the contractor's tools and equipment

Answer

Employee injuries during construction work

Answer

Disputes over the contract price

Question 2

Which DC commercial policy would cover a business's loss of income and ongoing expenses if a covered peril forces it to temporarily close?

Accepted Answer

Business interruption insurance

Answer

Commercial crime insurance

Answer

Inland marine insurance

Answer

Commercial umbrella insurance

Question 3

A DC employer purchases a fidelity bond to protect the business from:

Accepted Answer

Employee dishonesty, theft, or fraud

Answer

Customer lawsuits for product defects

Answer

Building damage from fire or vandalism

Answer

Vehicle accidents involving company cars

Question 4

In DC, professional liability insurance (errors and omissions) is designed to protect:

Accepted Answer

Professionals from claims of negligence or mistakes in rendering professional services

Answer

Businesses from property losses

Answer

Businesses from employee workplace injuries

Answer

Directors from stockholder lawsuits

Question 5

A DC property insurer uses a 'coinsurance clause' in a commercial policy. What does this clause require of the insured?

Accepted Answer

Maintaining insurance coverage equal to a specified percentage of the property's value

Answer

Sharing the premium cost with a co-insured party

Answer

Purchasing coverage from at least two different insurers

Answer

Reporting all property values to the DC Insurance Commissioner annually

Question 6

Which of the following is typically EXCLUDED from a DC commercial general liability policy?

Accepted Answer

Intentional acts by the insured

Answer

Third-party bodily injury on business premises

Answer

Property damage caused by business operations

Answer

Advertising injury claims