Question

The builder of a new arena is sued after a section of the roof collapses during a football game, injuring hundreds of people and causing extensive damage to the arena. This is an example of what kind of exposure

Answer 1

Answer:

The correct answer is letter "D": completed operations liability exposure.

Explanation:

Completed Operations Liability exposure refers to the risk contractors are subject to by which a third party can sue them alleging bodily and property injuries as a result of finished work. Under these circumstances, all the parties responsible in the operations of the work (contractors and subcontractors) are cited until it is determined who could be liable for the harm.

Contractors are obligated to keep a completed operations liability insurance to face such scenarios, Failure to count on insurance for these cases could be considered a breach of the contract with the general contractor of the work.