CRIS Question and answers verified to pass Section 3.1 - Professional Liability Insurance in Construction - correct answer ...
The key differences between a general liability and a professional liability insurance policy concern....? - correct answer covered damages, coverage trigger, and co...
CRIS - Misc Lines - Ch.3 - Professional
Liability Insurance in Construction
Section 3.1 - Professional Liability Insurance in Construction - correct answer
✔...
The key differences between a general liability and a professional liability
insurance policy concern....? - correct answer ✔covered damages, coverage
trigger, and covered activities.
Professional liability policies, provide a much broader scope of coverage
(covered damages are not limited to bodily injury and property damage), but
for only one general cause. What is the cause? - correct answer ✔the
rendering of, or failure to render, the specified type(s) of professional services.
Professional liability policies are not standardized, so the scope of coverage
can vary significantly from one form to the next. (T/F)? - correct answer
✔true
Professional liability policies are virtually always written with a
_________________ coverage trigger. - correct answer ✔claims-made
Claims-Made Coverage Trigger = - correct answer ✔the policy in effect at
the time a claim is made must respond to the claim when it is made.
Occurrence coverage trigger = - correct answer ✔responds to a claim based
on when the loss causing the claim occurred rather than when the claim
associated with the loss is made against the insured.
,Professional liability policies are nearly always utilized in design-build projects.
What is a design-build project? - correct answer ✔one in which a single
entity contracts to both design and build the project. Both design firms and
construction firms have begun to offer design-build services, with each
typically subcontracting out the part of the work that is not its area of
expertise. The designer and the builder thus work as a team on all phases of
the project to assure delivery of a quality, on-time facility or structure.
There are two primary types of professional liability insurance used in
construction: what are they? - correct answer ✔- contractors professional
liability insurance
- architects and engineers (A&E) liability insurance.
Contractors professional liability insurance applies to a contractor's
professional liability loss exposures that can range from _________________
to ___________________, such as that found in a design-build project. -
correct answer ✔- incidental design work
- full design responsibility
Direct versus Vicarious Liability:
Direct liability can be based on _________ fault or ________ fault. - correct
answer ✔1. active fault
2. passive fault
Active fault = - correct answer ✔affirmatively acting or failing to act in a way
that directly causes an accident and resulting injury or damage
, Passive Fault = - correct answer ✔failing to properly supervise a
subcontractor or to discover that a subcontractor is engaging in an unsafe or
improper work practice
Vicarious liability = - correct answer ✔the liability of the principal (e.g.,
contractor) for the acts of its agents, such as subcontractors or architects or
engineers.
Activities that Generate a Professional Liability Exposure:
Six Questions - If the contractor's answer to any of the following questions is
"yes," the firm likely has at least an incidental (i.e., minimal, but nevertheless
one that exists and requires coverage) professional liability loss exposure. -
correct answer ✔1. Does the firm enter into explicit design-build or
construction management projects?
2. Does the firm perform services for a fee that involve no "hands on"
construction work?
3. If so, do these services involve skills or expertise that require special
education, degrees, or licenses?
4. Could failure to exercise the appropriate degree of skill and care cause
harm to others?
5. Does the firm have any licensed professionals—primarily architects or
engineers—on staff, or does it ever contract with such professionals for
services?
6. Does the firm ever lend employees to others for a fee?
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