A contractor's general liability insurance has a $2,000,000 per occurrence limit. A claim for $2,500,000 is filed. Assuming the claim is covered, what is the contractor's potential exposure?
Correct Answer
D) $500,000
The insurance covers up to $2,000,000, leaving the contractor exposed to the remaining $500,000 of the claim.
Why This Is the Correct Answer
The insurance covers up to $2,000,000, leaving the contractor exposed to the remaining $500,000 of the claim.
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