DC Commercial Insurance Flashcards

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

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

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.

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

Answer: Business interruption insurance

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.

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

Answer: Employee dishonesty, theft, or fraud

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

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

Answer: Professionals from claims of negligence or mistakes in rendering professional services

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

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

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

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.

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

Answer: Intentional acts by the insured

CGL policies exclude coverage for intentional or deliberate acts by the insured because insurance is meant to cover accidental, not purposeful, harm.