Louisiana P&C Adjuster Practice Exam

In Sal's case, what hazard classification does the damage caused by using the wrong tool fall under in a CGL policy?

1. Products liability

2. Operations liability

3. Completed operations liability

4. Premises liability

The correct answer is: Operations liability

Using the wrong tool in Sal's case would fall under operations liability in a Commercial General Liability (CGL) policy because it pertains to the ongoing activities and operations involved in a project or job. Operations liability covers injuries and damages that occur during the course of business operations. In this context, the act of using the wrong tool represents a risk associated with the operational aspects of the job, leading to potential harm or damage to others or their property. Products liability would imply a defect or issue with a product itself, which doesn’t relate directly to the context of using tools incorrectly. Completed operations liability generally covers incidents that occur after a job is finished, while premises liability is concerned with injuries occurring on one’s property. Thus, operations liability is the most appropriate classification for the situation described, as it directly addresses the risks arising from the action being performed at the time the incident occurred.