CPCU 552|136 Questions with 100% Correct Answers | Updated | Guaranteed A+

The term "you" is used throughout the Commercial General Liability Coverage Form. "You" is defined to include: - ️️The named insured shown in the declarations. Smart Endeavors, a retail clothing store, hired ABC Contractors to install a new air conditioning system in one of its stores. ABC misrouted some wires during the installation process, which caused the wires to overheat and caused a fire. The air conditioning unit had to be rewired, which cost $1,000. Smart Endeavors' building sustained $30,000 worth of damage and $40,000 worth of inventory was damaged by smoke. Smart Endeavors was closed for two weeks and lost $10,000 in profits during that period. ABC has liability insurance under a standard Commercial General Liability (CGL) Coverage Form with $1,000,000 per occurrence limits. Which one of the following statements concerning coverage for damages under Coverage A of the CGL is most accurate? - ️️ABC will pay $80,000 for the fire damage to the building and inventory as well as the lost profits, but the CGL excludes the cost of work that was incorrectly performed, which means the $1,000 rewiring costs are excluded. EXPLANATION: ABC will pay $80,000 for the fire damage to the building and inventory as well as the lost profits, but the CGL excludes the cost of work that was incorrectly performed, so the $1,000 rewiring costs are excluded. Which one of the following statements concerning the Damage to Your Product and Damage to Your Work exclusions in Coverage A of the Commercial General Liability Coverage Form is most correct? - ️️These exclusions only apply to damage to the work or product itself, but do not apply to any subsequent damage or injury that was caused by the product. A plumbing contractor has a commercial general liability (CGL) policy that contains no endorsements. Which one of the following claims would be covered by the CGL? - ️️An employee of the plumbing contractor damaged a building while installing a waterline. For which one of these would the Damage to Your Product and Damage to Your Work exclusion eliminate coverage? - ️️A product that the insured incorrectly designed