Alabama Insurance Adjuster Practice Exam

In David's Commercial General Liability policy, what best describes Tina after she is hired as an office manager?

1. Independent contractor

2. Employee

3. Temporary worker

4. Subcontractor

The correct answer is: Independent contractor

In the context of a Commercial General Liability (CGL) policy, the most accurate description of Tina after being hired as an office manager is that she is categorized as an employee. Typically, an employee is someone who works for an employer under a contract of employment, meaning that there is a degree of control and direction from the employer regarding how work is to be performed. This classification is particularly relevant in insurance contexts, as employees are generally covered under the employer's liability policy for work-related incidents, whereas independent contractors and subcontractors usually carry their own insurance. Also, the terms "temporary worker" typically refer to individuals hired for a limited duration, often from an agency, which does not seem to apply in this scenario where Tina is directly hired in a managerial capacity. Overall, understanding the nuances of employment classification is crucial for determining coverage under a CGL policy, especially in terms of liability for actions taken by individuals within the scope of their employment.