Before a subcontractor begins an excluded high-risk operation, what should the prime do about the known insurance gap?
- Use contract and insurance controls
- BAssume the certificate overrides exclusions
- CHide the operation from the carrier
- DBegin and request coverage after a loss
Why A is correct
The best answer is: Use contract and insurance controls. Coverage depends on actual policy terms, classifications, exclusions, endorsements, and facts. Early review permits negotiation or alternative controls before exposure begins. The new fact pattern changes the setting, not the governing rule or management control. The other choices either skip a required step, apply a different rule, or fail to address the stated risk.