NASCLA CONTRACTORS
NASCLA Contractors Guide Virginia (Chapter 4, 8 TH Edition)
Managing Risk.
Why is managing risk important? - ✔✔✔ - important to your reputation and bottom line
-Lower business and liability insurance premiums
-Reduce chances of being sued
-Improve chances of prevailing in a lawsuit
What should supplement your risk management program? - ✔✔✔ - Insurance. It provides
protection against unforeseen events and is sometimes required by law
What does property insurance typically cover? - ✔✔✔ - insurance typically covers your
business and personal property when damage, theft, or loss occurs.
types of property insurance: All-risk builders' risk, named peril builders' risk, inland .
marine/equipment theft, equipment floater, transportation floater, and motor truck cargo
policies
What is the purpose of liability insurance? - ✔✔✔ - designed to protect against third-party
claims that arise from alleged negligence resulting in bodily injury or property damage
Name the types of liability insurance policies available - ✔✔✔ - commercial general, umbrella,
and director's and officer's liability insurance
What is bundled under business owner policies? - ✔✔✔ - Property and liability coverage
NASCLA CONTRACTORS Page 1
, NASCLA CONTRACTORS
What is typically covered under auto insurance? - ✔✔✔ - Liability and physical damage
associated with vehicles owned or leased by your company
What is typically covered under Burglary and Theft Insurance? - ✔✔✔ - Loss or damage by
burglary, theft, larceny, robbery, forgery, fraud, and vandalism
What insurance is designed to protect the continuing success of the
business? - ✔✔✔ - Key Man Life Insurance: This type of insurance is available as life insurance
or disability insurance, or both
-This type of coverage is beneficial if your company depends on specific individuals
True of false:It is NOT important to evaluate all of your insurance coverage. - ✔✔✔ - FALSE
What may minimize gaps and overlaps in coverage? - ✔✔✔ - Using one insurer
What are types of employment-related insurance regulated by state and/or federal government?
- ✔✔✔ - Workers' compensation, unemployment, and social security
Is insurance coverage required for subcontractors used? - ✔✔✔ - YES These requirements
should be outlined in the construction contract
What is a Bond? - ✔✔✔ - provide protection in the event that contractual obligations are not
met.
At a minimum, what should bonds contain? - ✔✔✔ - the total dollar amount, length of the
bond, requirements for notice of defect or lack of maintenance, and bond enforcement
NASCLA CONTRACTORS Page 2
NASCLA Contractors Guide Virginia (Chapter 4, 8 TH Edition)
Managing Risk.
Why is managing risk important? - ✔✔✔ - important to your reputation and bottom line
-Lower business and liability insurance premiums
-Reduce chances of being sued
-Improve chances of prevailing in a lawsuit
What should supplement your risk management program? - ✔✔✔ - Insurance. It provides
protection against unforeseen events and is sometimes required by law
What does property insurance typically cover? - ✔✔✔ - insurance typically covers your
business and personal property when damage, theft, or loss occurs.
types of property insurance: All-risk builders' risk, named peril builders' risk, inland .
marine/equipment theft, equipment floater, transportation floater, and motor truck cargo
policies
What is the purpose of liability insurance? - ✔✔✔ - designed to protect against third-party
claims that arise from alleged negligence resulting in bodily injury or property damage
Name the types of liability insurance policies available - ✔✔✔ - commercial general, umbrella,
and director's and officer's liability insurance
What is bundled under business owner policies? - ✔✔✔ - Property and liability coverage
NASCLA CONTRACTORS Page 1
, NASCLA CONTRACTORS
What is typically covered under auto insurance? - ✔✔✔ - Liability and physical damage
associated with vehicles owned or leased by your company
What is typically covered under Burglary and Theft Insurance? - ✔✔✔ - Loss or damage by
burglary, theft, larceny, robbery, forgery, fraud, and vandalism
What insurance is designed to protect the continuing success of the
business? - ✔✔✔ - Key Man Life Insurance: This type of insurance is available as life insurance
or disability insurance, or both
-This type of coverage is beneficial if your company depends on specific individuals
True of false:It is NOT important to evaluate all of your insurance coverage. - ✔✔✔ - FALSE
What may minimize gaps and overlaps in coverage? - ✔✔✔ - Using one insurer
What are types of employment-related insurance regulated by state and/or federal government?
- ✔✔✔ - Workers' compensation, unemployment, and social security
Is insurance coverage required for subcontractors used? - ✔✔✔ - YES These requirements
should be outlined in the construction contract
What is a Bond? - ✔✔✔ - provide protection in the event that contractual obligations are not
met.
At a minimum, what should bonds contain? - ✔✔✔ - the total dollar amount, length of the
bond, requirements for notice of defect or lack of maintenance, and bond enforcement
NASCLA CONTRACTORS Page 2
