North Carolina Adjuster Practice Exam

What type of liability covers physical injuries occurring after project completion?

1. Completed Operations Liability

2. General Liability Insurance

3. Occurrence Liability Insurance

4. Professional Liability Insurance

The correct answer is: Completed Operations Liability

Completed Operations Liability is specifically designed to protect against claims arising from physical injuries or property damage that occur after the work on a project has been completed. This type of liability is crucial for contractors and businesses, as it provides coverage for incidents that transpire once the project is handed over and the work is deemed finished. This coverage is particularly relevant in construction and similar industries where a party's work may lead to unforeseen issues long after their direct involvement has ended. For instance, if a building has structural problems due to faulty workmanship after completion and someone is injured as a result, Completed Operations Liability would cover claims for those injuries. In contrast, General Liability Insurance provides broader coverage, including premises liability, but it does not specifically focus on incidents occurring after a project's completion. Occurrence Liability Insurance pertains to incidents that occur during a policy period, regardless of when the claim is made, making it a more general type of coverage. Professional Liability Insurance mainly addresses claims related to professional services and advice, rather than physical injuries related to completed construction work. Therefore, Completed Operations Liability is the most suitable type of liability insurance that corresponds to the situation described, focusing on post-completion incidents.