Exam DISC-IA Practice Question 833
Study guide: Exam DISC-IA
A contractor expects 5 premises and operations liability claims a year. With illustrative figures, 30% of claims result in a payment averaging $40,000, and defending a claim costs $8,000 on average whether or not it results in a payment. What is the expected annual cost of this liability loss exposure, including defense?
- A) $60,000
- B) $72,000
- C) $100,000
- D) $240,000
Answer this question and see the worked solution