There are many types of commercial insurance.
What are common insurance coverages that may be provided under an architect’s professional liability coverage? Select the four that apply.
Throughout the correct/ incorrect answers, the following list would have qualified:
- contractual liability
- fidelity bond
- business interruption insurance
- worker’s compensation
- intellectual property
Shouldn’t fidelity bond, business interruption insurance, and worker’s compensation be under the general liability?
I also remember in the last group meeting somebody mentioning that worker’s compensation is a separate policy.
Could we have some more insights on this?
I got tripped up by this question too by the word “under”. In my readings do they say the other types of insurance are “under” professional liability insurance. However, this question is one of those trying to trick you by providing actual types of insurance versus “made-up” (i.e. business-continuation, is actually called business-interruption). I am not so sure these other are under General Liability unless there is some kind of “umbrella” coverage. So in this case it is best to recognize the correct terms versus the incorrect terms.
Hi Oana & Jared,
I think Jared’s read of the trick to this question is spot on!
I also find this question very confusing because these items seem to all be separate policies, not necessarily under the umbrella of professional liability. For example, Phillip in our group who owns his own design-build firm says that his workers compensation is provided by the same agency as his general liability insurance, but is a separate policy which is billed independently.
Because each insurance policy is different, perhaps the question is throwing a bunch of insurance types which may not always be included under professional liability out as options which could be included under a professional liability coverage. Just as Jared said, the trick is to select all options which actually are types of insurance and not to select terms which are made up.
Does anyone with more direct experience with insurance policies have more insight?
Darion & Jared,
I also think that the name of the policies is the trick.
In regard to this, I’m trying to figure the way insurance policies names work. Does anyone know if it’s a general rule that the given name (errors and omissions, worker’s compensation, business interruption) is the name of the fact leading to damage/loss and not the expected resolution, (as was the case for business continuation)?
As Jared said, business interruption and business continuation seem interchangeable, and without knowing the actual name of the policy, I find it hard to differentiate. It would definitely help to understand a more general logic for these names.
I have additional finding on this.
The AIA Handbook references all of the above stated policies under the Commercial General Liability Insurance instead of E&O.
Maybe the question in the exam should be revised.