A contractor damages the owner's hardwood floor while moving equipment. Which policy type would the owner most likely ask about first?
Correct Answer
A) Commercial general liability insurance.
Third-party property damage is the kind of risk generally associated with commercial general liability coverage.
Why This Is the Correct Answer
Third-party property damage is the kind of risk generally associated with commercial general liability coverage.
Why the Other Options Are Wrong
Option B: Workers' compensation insurance.
Workers' compensation insurance. skips the written authority, scope, price, notice, or release control needed for commercial general liability.
Option C: A preliminary notice, even though the notice preserves lien rights rather than covering damage.
A preliminary notice, even though the notice preserves lien rights rather than covering damage. skips the written authority, scope, price, notice, or release control needed for commercial general liability.
Option D: A payroll tax bond.
A payroll tax bond. skips the written authority, scope, price, notice, or release control needed for commercial general liability.
Memory Technique
Contract square for Responding Homeowner'S: scope, authority, price, paper.
Reference Hint
Study anchor (closed-book): memorize Commercial general liability from CSLB 2026 Law Book; California insurance and contractor risk. / CSLB Law Book insurance and business risk management; know the rule or calculation trigger without relying on exam-room lookup.
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