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al-supplementAlabama State Supplementhard

A contractor completes a $75,000 home addition but discovers they made an error in the foundation layout. The homeowner demands the contractor rebuild the foundation at the contractor's expense. If the contractor's insurance covers this claim, which type of insurance would respond?

Correct Answer

C) Professional liability insurance

Professional liability (errors and omissions) insurance covers mistakes in professional services, including design and construction errors.

Answer Options
A
Workers compensation insurance
B
Commercial auto insurance
C
Professional liability insurance
D
General liability insurance

Why This Is the Correct Answer

Professional liability (errors and omissions) insurance covers mistakes in professional services, including design and construction errors.

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