EstatePass
mi-businessMichigan Business Managementhard

A contractor receives a complaint filed with LARA regarding defective work. The contractor has insurance coverage of $500,000 general liability and $100,000 professional liability. The claim is for $75,000 in damages. Which insurance policy would primarily respond to this claim?

Correct Answer

D) General liability only

Defective workmanship claims are typically covered under general liability insurance, which covers bodily injury and property damage caused by the contractor's operations.

Answer Options
A
Professional liability only
B
Both policies equally
C
Neither policy covers this type of claim
D
General liability only

Why This Is the Correct Answer

Defective workmanship claims are typically covered under general liability insurance, which covers bodily injury and property damage caused by the contractor's operations.

Was this explanation helpful?

More mi-business Questions

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your Florida General Contractor exam.

Start Practicing

Disclaimer: EstatePass is an independent exam preparation platform and is not affiliated with, endorsed by, or connected to any state contractor licensing board, the Construction Industry Licensing Board (CILB), the Department of Business and Professional Regulation (DBPR), NASCLA, Pearson VUE, PSI, or any government agency. Exam requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing board before making decisions. Information shown was last verified on the dates indicated and may not reflect the most recent changes.