25 Questions
Which property is excluded from coverage under the Builders' Risk Broad Form property insurance policy?
Marine construction projects such as bridges or wharves
What type of insurance should be obtained for contractor's tools and equipment?
Contractor's Equipment Floater Policy
When does coverage for projects left unattended or with ceased construction activity cease?
After 30 consecutive days
What type of coverage should be added to the Owner's Builders' Risk Broad Form property insurance policy for remediation of faulty material, workmanship, or design?
IBC 4047 coverage
Which of the following is true about early occupancy in a warehouse or manufacturing plant?
Early occupancy is allowed but requires policy amendments
What is the typical coverage period provided for mechanical or electrical breakdown of equipment during testing or commissioning?
21 to 30 days
Which of the following is excluded from coverage unless it is refurbished with the manufacturer's warranty still in force?
Used equipment
What additional risks are associated with renovation and addition projects?
All of the above
Which of the following is NOT a peril covered by the standard Builders' Risk Broad Form property policy?
Wear and tear
What should be the minimum required limit for the CCDC 2 Builders' Risk Broad Form property policy?
Contract Price + full value of Products and design services + fees charged by architects and engineers
Which of the following can be covered by the Business Interruption extension of the Builders' Risk Broad Form property policy?
Soft costs incurred due to property damage
What can Extra Expense Insurance or Expediting Expense Insurance assist with?
Funding and completing the project expeditiously
Which insurance coverage is required under the insurance provisions of CCDC contract forms?
A separate policy or an endorsement to either the Boiler and Machinery policy or the Builders’ Risk Broad Form property policy to provide coverage during testing
What does Boiler and Machinery Insurance (now more commonly referred to as 'Equipment Breakdown Insurance') cover?
Mechanical or electrical breakdown of certain 'objects'
Which types of equipment are covered under the comprehensive form of Boiler and Machinery Insurance?
All of the above
In what ways can the insurance industry offer coverage for Boiler and Machinery Insurance?
All of the above
What is the more commonly used term for 'Boiler and Machinery Insurance'?
Equipment Breakdown Insurance
Which type of coverage typically excludes damage caused by viruses and the liability for spreading viruses to computer networks of others?
Cyber coverage
What is the best practice to ensure coverage is available for 'data' and 'data problem' both at the jobsite and away from the jobsite?
Extend the coverage for 'Valuable Papers and Records' to cover 'data' and 'data problem'
What is the potential consequence of not adhering to the best practice of keeping frequent back-ups of critical 'data'?
Losing all work done by all parties since the last successful and retrievable back-up
What is commonly referred to as 'third-party cyber coverages'?
Liability for theft of, loss of, or corruption to somebody else's 'data'
Which of the following is NOT a material change that should be brought to the attention of the insurance representative?
Partial or total occupancy of the project prior to completion for purposes other than habitational, office, retail, or parking.
What is the purpose of deductibles in insurance policies?
To avoid the administrative cost of handling minor losses.
What is the maximum deductible specified in CCDC 41?
$5,000
What is the purpose of the "Valuable Papers and Records" coverage?
To indemnify for the reproduction costs of blueprints and shop drawings.
Quiz: Understanding Builders' Risk Insurance Coverage Test your knowledge on builders' risk insurance coverage and learn about the specific exclusions and amendments related to electrical and mechanical breakdown or derangement of machinery. Find out how this policy can protect your construction project and discover the options available to insure against potential damages.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
