Question

A contractor puts in a claim under a comprehensive standard general liability policy. The policy has no additional coverage, riders, or floaters, and has a $500 deductible per occurrence. The claim is for a job-site accident that caused $2,000 of injuries to employees, $1,800 of injuries to a pedestrian, $2,300 damage to the contractor's equipment, and $1,750 loss of project materials purchased by the contractor. The insurance company is liable for

Answer 1

Answer: $1,300

Explanation:

A comprehensive standard general liability policy is used when there are operations being conducted by a contractor or tenant. The basic policy covers property damage to other parties as well as bodily harm. Seeing as there are no additional coverages, the basic plan is in effect.

The only thing that can be covered here by the insurance company therefore is the $1,800 damage to the pedestrian because the rest relate to the contractor so are not covered,

As there is a $500 deductible, the amount the insurance company is liable for is:

= 1,800 - 500

= $1,300