Insurance & LiensQuestion 468 of 1605
A property owner is injured when a wall built by the contractor's crew collapses on her. Which of the contractor's policies is designed to respond to this third-party bodily injury claim?
a.The contractor's workers' compensation policy
b.The $25,000 contractor license bond
c.Commercial general liability (CGL) insurance
d.Builder's risk insurance
Explanation
Commercial general liability (CGL) insurance covers third-party bodily injury and property damage caused by the contractor's operations. Workers' compensation covers the contractor's own employees, not third parties.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)