Woolpert Risk Awareness Program - Module 5

Woolpert's automobile insurance does not cover employees driving from their home to their office. This means that if an employee gets into an accident during their commute, they will not be covered by the company's insurance policy. It is important for employees to have their own personal automobile insurance to ensure they are protected during their commute.

Woolpert generally obtains three types of bonds: bid, performance, and payment. Bid bonds are used to ensure that if a contractor wins a bid, they will enter into a contract and provide the required performance and payment bonds. Performance bonds guarantee that the contractor will complete the project according to the contract terms, while payment bonds ensure that subcontractors and suppliers are paid for their work and materials.

The correct answer is "All of the above" because the costs of defending claims include settlement costs, which are the expenses incurred to resolve the claim outside of court. It also includes staff downtime, which refers to the time and productivity lost by employees involved in the defense process. Additionally, attorney's fees are part of the costs as they are the charges for legal representation during the defense. Therefore, all three options mentioned in the question are valid components of the costs of defending claims.

The correct answer is "Only (A) and (C)". This means that the items that should be reported to Woolpert's In-House legal counsel immediately are claims and incidents. Addendum requests do not need to be reported.

Breach of warranty is not covered under Woolpert's professional liability policy.

Professional liability insurance is available on a per claim basis. This means that the policy covers each individual claim made against the insured, regardless of the number of claims made during the policy period. This is different from per occurrence coverage, which only covers claims arising from a single incident or occurrence. With per claim coverage, the insured is protected against multiple claims that may arise from different incidents or occurrences.

The service line that has not been involved with litigation during the period of 1990 thru 2008 is EIM.

Bonds are not insurance. If a bonding company pays out, the bonding company will require reimbursement from Woolpert.

An OCP policy, also known as Owner's and Contractor's Protective policy, is a type of insurance coverage that provides protection to both the owner and contractor involved in a construction project. This policy is designed to cover the owner and contractor against any liability claims arising from the project, such as property damage, bodily injury, or negligence. It is important for both parties to have this policy in place to ensure that they are adequately protected in case of any unforeseen events or accidents during the construction process.

Builder's risk insurance is a type of insurance policy that is specifically designed to cover construction projects. It provides coverage for damage or loss to the project during the construction phase. This insurance typically covers the structure being built, as well as materials, equipment, and fixtures on-site. Therefore, it is accurate to say that builder's risk insurance is the typical policy under which construction projects are insured.

The correct answer is A and B. This means that Woolpert's commercial general liability policy has a limit of $1,000,000 per occurrence, which is the maximum amount the policy will pay for a single incident, and a limit of $2,000,000 annual aggregate, which is the maximum amount the policy will pay for all incidents in a policy year. Both of these limits are applicable to Woolpert's liability coverage.

The number of claims typically vary by year.

The statement "Woolpert’s claim history is not consistent with Woolpert’s growth" is false. This means that Woolpert's claim history is consistent with its growth. In other words, Woolpert's growth is reflected in its claim history.

Woolpert can agree to name our clients as an additional insured on the Commercial General Liability policy. This means that our clients will have coverage for any claims or damages arising from their involvement with Woolpert's services. The Commercial General Liability policy provides broad coverage for a variety of risks, such as bodily injury, property damage, and personal injury. By naming our clients as additional insured, they will have the same level of protection as Woolpert under this policy.

Woolpert's professional liability policy is categorized as a "practice" policy. This type of policy is specifically designed to provide coverage for professionals, such as architects, engineers, and consultants, who may face claims or lawsuits arising from their professional services. It typically covers errors, omissions, negligence, and other professional liabilities that may occur during the course of their practice. This type of policy is essential for professionals to protect themselves and their businesses from potential financial losses and legal expenses.

Rental cars retained by employees in the course of business are covered under Woolpert’s automobile liability policy.

A bid bond is a type of surety bond that is provided by a contractor as a guarantee to the client that they will enter into a contract if their bid is accepted. The purpose of the bid bond is to protect the client from financial loss in the event that the original contractor refuses to sign a contract. In such a situation, the client may incur costs to re-bid or choose the next higher contractor. Therefore, the bid bond is intended to cover the client's costs in this scenario.

Commercial general liability insurance provides coverage for third-party bodily injury or property damage caused by the business operations. In this scenario, if an employee accidentally cuts down a tree while performing a site observation or survey, the damage would be considered as property damage. Therefore, commercial general liability insurance would provide coverage for the damage caused by the employee's actions.

Woolpert's professional liability insurance has an initial deductible of $500,000. This means that if Woolpert needs to make a claim on their insurance policy, they will have to pay the first $500,000 of the claim themselves before the insurance coverage kicks in. This high deductible amount suggests that Woolpert's insurance policy is designed to cover major losses or claims rather than smaller ones.

Woolpert's professional liability claims are primarily made by third parties. This suggests that these claims are not typically initiated by the clients themselves or by subconsultants, but rather by individuals or organizations who are not directly involved in the contractual relationship with Woolpert. This could include individuals who have been affected by the actions or negligence of Woolpert's employees or subcontractors, or entities who have suffered financial or reputational harm as a result of Woolpert's work.

The limit of liability on an insurance policy represents that maximum amount of monetary coverage that the insurer will pay out on the policy. It has nothing to do with the insured’s liability.

Deductibles and premiums have an indirect relationship to one another (i.e., a lower premium results in a higher deductible).

Endorsements can add or subtract from the standard coverage.

In Ohio, a waiver of subrogation on workers' compensation is not permitted. This means that employers in Ohio cannot waive their right to seek reimbursement from a third party responsible for an employee's injury or illness. This is different from North Carolina and Colorado, where such waivers are allowed. Therefore, the correct answer is Ohio.

On a per occurrence basis, the insurance policy in place at the time of the original event giving rise to the claim is the policy that will respond, even if the event occurred two years prior and you have since switched insurance. A per claim policy only responds to claims filed during the calendar year of the policy, regardless that the original event giving rise to the claim occurred two years prior when you had different insurance.

Woolpert's umbrella/excess liability insurance extends coverage for Commercial general liability (II) and Automobile liability (IV) policies. This means that if there are any excess claims or damages beyond the coverage limits of these policies, Woolpert's umbrella/excess liability insurance will provide additional coverage.

Professional liability policies written on a project basis are intended to help remove exposure from an underlying practice policy. This means that if a professional is working on a specific project, having a professional liability policy specifically for that project can help protect them from any claims or lawsuits related to that project. By having a separate policy for each project, the exposure is removed from the overall practice policy, ensuring that claims related to one project do not affect the coverage and premiums of other projects. Therefore, the statement "True" is the correct answer.