Louisiana P&C Adjuster Practice Exam

Which of the following scenarios would likely be covered under a completed operations liability clause?

1. A service provider completes a job and the work fails later

2. A customer slips on a wet floor in a store

3. Damage caused by a faulty product sold at a store

4. An employee gets injured while performing a task

The correct answer is: A service provider completes a job and the work fails later

The completed operations liability clause is specifically designed to provide coverage for liability that arises after a contractor or service provider has completed their work. In the scenario where a service provider completes a job and the work fails later, this type of clause would apply. The rationale is that even after project completion, issues arising from the work can lead to damage or injury, for which the provider may be held liable. This type of liability coverage is critical for contractors because it protects against potential claims resulting from their completed work, distinguishing it from ongoing operations that may be covered under different general liability provisions. In contrast, the other scenarios do not fit within the realm of completed operations liability. A customer slipping on a wet floor in a store pertains to premises liability, which focuses on the safety of the environment where business is conducted. Damage from a faulty product sold at a store refers to product liability, which deals with injuries or damages stemming from the products themselves, rather than the operations of service work. Lastly, injuries suffered by an employee while performing a task would typically fall under workers' compensation, addressing employee safety and workplace-related injuries rather than completed operations liability.