continued on next page
Your insured is a sub-contractor who contracted to erect the steel
frame of a new convention centre in your city. During the
construction process, a large steel truss that formed a major portion
of the building’s support system was anchored into the base of the
building. The threaded steel bolts that were used for the anchoring
process were manufactured by a fastener supply company but
ordered by the project’s general contractor. The truss collapsed
during installation resulting in the death of one construction worker
and injury to several others. The collapse caused significant
damage to other portions of the construction project. Investigation
into the cause of the collapse revealed that the steel bolts used in
the anchoring of the truss were too small and not consistent with
the plans and specifications of the building’s design engineer.
Discuss the potential liability of your insured as a result of this
Students are presented with certain facts and background
information about a fictional organization. This material should be
carefully reviewed. All parts of the question should be answered.
Answers may be in note form but sufficient information, comment,
or interpretation should be given to show that the subject matter is
TRIPLE A LAUNDRY AND DRY CLEANERS
The Triple A Laundry and Dry Cleaning Corporation is a small
urban business that operates in rented premises at two locations.
The business provides on-site laundering of clothing as well as dry
cleaning services. The operation specializes in the dry cleaning and
preservation of bridal gowns. The business provides home delivery
of customer’s dry cleaning with company-owned vans and
The business’s insurance policy is up for renewal. You are the
insurance broker for the drycleaner.
(a) Identify TEN (10) liability exposures of Triple A Dry Cleaners.
(b) Prepare a recommended liability insurance program for the
company, using any of the coverages discussed in this course.
Mention all necessary sections of coverage and extensions
(c) The insurance program you have suggested is now in place
and the following incident has occurred.
While operating a clothes press, an employee of the insured