Which of the following indemnifications is an insured contract covered by a Commercial General Liability Policy?

Study for the PSI Property and Casualty Exam with flashcards and multiple choice questions. Each question has hints and explanations. Prepare effectively for your insurance licensing exam!

The correct choice regarding which indemnification is covered by a Commercial General Liability (CGL) Policy relates to the indemnification of a municipality as required by an ordinance. In the context of an insured contract under a CGL policy, contracts that involve indemnifying municipalities are typically recognized and covered. Municipalities often require businesses to indemnify them for liability that arises out of the operations of the business, particularly when the business is involved in a project working with or on behalf of the municipality. This is an important aspect of risk management for municipalities, ensuring they have financial protection from claims related to an insured party's actions.

The other options involve indemnifications for errors and omissions or specific damage scenarios that typically fall outside the general coverage provided by the CGL policy. Coverage for errors and omissions is often associated with professional liability insurance rather than general liability, as it pertains to negligence in professional services. Similarly, specific scenarios like indemnification for fires caused by the insured could be contingent upon personal liability terms and would not automatically fall under the CGL when not related to contractual obligations.

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