CIPS Exam L5M3 Topic 1 Question 48 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 48
Topic #: 1

[All L5M3 Questions]

Mark is a consultant who works with building managers and advises them on how to make their buildings safer. What type of insurance should Mark have?

APublic Liability

BProduct Liability

CProfessional Indemnity

DProperty Insurance

Show Suggested Answer

Suggested Answer: C

The correct answer is: 'damages attempt to position the innocent party in the position that they would have been had the contract been performed as expected'. This is a quote from p. 121 Option1 is incorrect as unliquidated damages aren't stated in a contract. Option 2 is incorrect because liquidated damages are an assessment of damages before a breach. Option 4 is incorrect because not all breaches are caused by errors (they can be caused by negligence or the offending party withholding something).

by Yun at Mar 05, 2025, 02:42 AM

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22 days ago

I think Mark should have Professional Indemnity insurance.

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