North Carolina Adjuster Practice Exam

Which coverage would assist William with liability for the porch he built?

1. Personal Liability Insurance

2. Completed Operations Liability

3. Product Liability Insurance

4. General Liability Insurance

The correct answer is: Completed Operations Liability

The appropriate coverage that would assist William with liability for the porch he built is Completed Operations Liability. This type of insurance is specifically designed to cover liability arising from work that has been completed. When a contractor or a builder like William constructs a structure—such as a porch—and it causes injury or property damage after the work is completed, this insurance protects against claims that may arise from that completed work. In the case of a porch, if someone were to be injured due to a defect in the construction or if the porch caused damage to another property after it was built, Completed Operations Liability would provide coverage for any legal claims related to this. This is particularly important for contractors and builders to protect themselves from potential lawsuits stemming from their completed work. Other types of coverage serve different purposes: Personal Liability Insurance typically covers individual homeowners from claims involving bodily injury or property damage occurring on their own premises; Product Liability Insurance covers claims related to products that cause harm after being sold; and General Liability Insurance covers a broader range of operational liabilities but is not as specific to completed work as Completed Operations Liability. Therefore, Completed Operations Liability is the most suitable for William's situation regarding the porch he constructed.