Utah Contractor Practice Exam

______ will protect against accidents/damages to visitors or items the company does not own.

1. Builders risk

2. General

3. Equipment Floater

4. Commercial General Liability

The correct answer is: Commercial General Liability

Commercial General Liability insurance is designed to protect a contractor or business against claims for bodily injury and property damage that could occur on their premises or in relation to their operations. This type of insurance covers accidents involving visitors and damages to items owned by others, which is crucial in a construction context where the potential for such incidents is significant. For example, if a visitor to the construction site were to trip and fall or if a piece of equipment were to accidentally damage a neighboring property, Commercial General Liability insurance would typically cover the legal costs and any settlements or judgments resulting from such claims. This results in protecting the company's financial interests against unforeseen liabilities arising from their business operations. In contrast, Builders Risk insurance mainly covers buildings under construction and materials on-site, Equipment Floater covers specific equipment and tools owned by the company while in transit or at job sites, and General insurance is a broader term that could encompass various types of business insurance but does not specifically address liability issues. Therefore, the coverage provided by Commercial General Liability is the most relevant for protecting against accidents or damages to visitors and items not owned by the company.