Design-Build Institute of America (DBIA) 2025 – 400 Free Practice Questions to Pass the Exam

Commercial General Liability insurance is specifically designed to protect contractors from various risks that can arise during construction projects, making it the correct answer. This type of insurance covers claims related to bodily injury, property damage, personal injury, and advertising injury that might occur on a job site or as a result of construction activities. It is essential for contractors as it helps manage the financial exposure they face from lawsuits or claims made by third parties.

In contrast, Worker’s Compensation primarily focuses on protecting employees by covering medical expenses and lost wages resulting from work-related injuries. It does not address the broader range of risks faced by contractors during project execution. Surety bonds are guarantees that a contractor will fulfill contractual obligations, helping clients recover costs if the contractor defaults but do not cover liability risks directly. Similarly, payment bonds ensure that subcontractors and suppliers are paid for their work and materials but do not cover liabilities or risks associated with injuries or damages that may occur on the project site.