Question

Happy homes homebuilders is insured under a general liability policy. which of the following losses is not covered by this policy?

a. in an attempt to increase its profits, happy homes installs lower grade appliances, countertops, and carpet than are called for in the contract.
b. a forklift operator damages a home under construction when he backs up and hits a wall.
c. a load of bricks topples over at a happy homes construction site, injuring a pedestrian.
d. a newly built chimney on a home under construction falls over, damaging the house next door.

Answer 1

A general liability policy does not cover losses related to intentional acts or professional negligence.

Step-by-step explanation:

The loss that is not covered by a general liability policy for Happy Homes Homebuilders is option A: in an attempt to increase its profits, Happy Homes installs lower grade appliances, countertops, and carpet than are called for in the contract. This type of loss falls under the category of intentional acts or professional negligence, which is typically not covered by general liability insurance policies.

Options B, C, and D are all covered by general liability insurance. Option B covers property damage caused by an accident involving a forklift operator. Option C covers bodily injury to a pedestrian due to an accident on the construction site. Option D covers property damage caused by a faulty construction element, such as a chimney falling over and damaging a neighboring house.