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

Completed operations coverage protects contractors from liability for injury or damage that arises after a job is done and the contractor has left the premises.

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

Business interruption insurance replaces lost revenue and pays continuing expenses (like rent and payroll) when a covered loss forces a business to shut down temporarily.

Question 3

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

Accepted Answer

Employee dishonesty, theft, or fraud

Answer

A fidelity bond (commercial crime coverage) reimburses an employer for financial losses caused by dishonest acts of employees.

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

E&O insurance covers claims alleging that a professional caused financial harm to a client through errors, omissions, or negligent advice.

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

A coinsurance clause requires the insured to carry coverage equal to a set percentage (commonly 80%) of the property's replacement value or face a penalty at claim time.

DC - District of Columbia Insurance Practice Test

DC - District of Columbia Insurance Practice Test

DC DC Commercial Insurance 2