direct v. indirect hazards CGL second question

direct v. indirect hazards CGL second question

by Deleted user -
Number of replies: 3

Here is a second question which illustrates just what I ppreviously said.  A and C are examples of indirect hazards.

 

What is an example of a business's liability for the existence of "direct" hazards?

Choose one answer.
A. The business being held liable for actions of an independent contractor to whom the insured has subcontracted a part of the general contract work.
B. A person being injured by an allegedly unsafe condition in premises owned or occupied by the insured.            Correct
C. The business being held liable for liability ordinarily belonging to another, but the business agreed by contract to indemnify or hold harmless one whose direct actions produced the claim.
D. All of the answers are correct
In reply to Deleted user

Re: direct v. indirect hazards CGL second question

by Grisel Padron -
Hi Ronald, I'm gonna take a chance and respond. These all qualify as "hazards" because by definition they can bring about a peril. Only "B" is DIRECT because the other two hazards are through another party and are descriptions of different liability. A is an example of an indirect hazard from a sub contractor through a contract. C is an example of a hazard through a second business and is called a contractual liability. Only B is direct liability without another party involved. I just confirmed it with the manual. Hooe that helps.
In reply to Grisel Padron

Re: direct v. indirect hazards CGL second question

by Deleted user -

Thanks Grisel.  My comment is really as to my prior comment (direct v. indirect hazards CGL).  The first question asked what is an indirect hazard.  It is in that question that the answers provided were A and C, but the course only credits answer A.  Look at page 109 in the state manual.  I realize for an a direct hazard only answer B is correct in the second question.  Take a look.  Thanks.

In reply to Deleted user

Re: direct v. indirect hazards CGL second question

by Jan Bradburn- -

Ronald,

The page yoiu refer to in the state manual, lists three kinds of liability: direct, indirect and assumed (or contractual) liability.  It also gives an example of each type of liability.

The question you reference has one correct answer. An example of indirect liability is: the
business being held liable for actions of an independent contractor to whom the insured has subcontracted a part of the general contract work.

Liability that is assumed under a contract is not indirect liability because the hazard is "taken back" in the contract so the insured is directly responsible.

Jan