On a builder's risk policy covering a new commercial building during construction, which of the following losses is MOST LIKELY excluded from coverage?

Explanation

A builder's risk policy is property insurance on the work in progress, so (a), (b) and (d) are its bread and butter: fire, theft and windstorm are all covered physical losses to the project while it is being built. The standard form excludes the cost of making good faulty workmanship, material or design, which means that when the defective component is the very thing that fails, repairing it is the contractor's cost and not the insurer's. The distinction worth carrying into the exam is that resulting damage to other, sound parts of the project is usually still covered — it is the defective work itself that is carved out — and that this exclusion is a property-insurance rule, not a substitute for the completed-operations cover a general liability policy provides after the job is finished.