Georgia Adjuster Practice Test

What type of liability is included in the Builders Risk Policy?

1. Professional Liability

2. Product Liability

3. Completed Operations Liability

4. None of the above

The correct answer is: None of the above

The Builders Risk Policy is specifically designed to provide coverage for property during the construction phase, focusing on protecting the materials, fixtures, and any ongoing construction work from damage due to risks such as fire, theft, or certain types of weather. It does not extend to liabilities that arise from professional services, product defects, or completed operations. Professional Liability pertains to claims arising from professional services provided by architects or engineers, which is outside the scope of a Builders Risk Policy. Product Liability addresses the risks associated with defective products and the legal responsibilities of manufacturers, distributors, and retailers after a product is sold, which also does not relate to a construction-specific insurance policy. Completed Operations Liability covers risks that arise after the construction work has been completed, which is not addressed by a Builders Risk Policy, as this policy is active during the construction phase rather than after its completion. Therefore, the answer that indicates none of the listed types of liability are covered under the Builders Risk Policy is accurate, as this policy is primarily focused on property coverage during the construction process rather than these specific liability aspects.