CIPS L5M3 Exam - Topic 1 Question 48 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 48
Topic #: 1

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

Limited Time Offer

25%

Off

Get Premium L5M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Theodora

9 months ago

I didn’t know there were so many types of insurance for consultants!

upvoted 0 times

...

Edwin

9 months ago

Wait, are you sure Professional Indemnity is the best choice?

upvoted 0 times

...

Myong

10 months ago

I think Public Liability is also important for consultants.

upvoted 0 times

...

Joye

10 months ago

Totally agree, it protects against claims of negligence!

upvoted 0 times

...

Jamika

10 months ago

Mark should definitely have Professional Indemnity insurance.

upvoted 0 times

...

Evette

10 months ago

I’m confused about this one. I thought Product Liability was for products sold, but maybe it’s not relevant for a consultant like Mark?

upvoted 0 times

...

Ena

11 months ago

I’m leaning towards Professional Indemnity as well, since it covers mistakes in advice, but I wonder if Property Insurance could also apply somehow?

upvoted 0 times

...

Jerrod

11 months ago

I remember practicing a similar question, and I think Public Liability might be relevant too, but it feels more like a secondary option.

upvoted 0 times

...

Vanna

11 months ago

I think Mark should have Professional Indemnity insurance since he’s giving advice, but I’m not entirely sure.

upvoted 0 times

...

Kyoko

11 months ago

I'm a bit confused here. Is Product Liability the right answer since he's providing advice on building safety? Or is that not quite the right fit? I'll need to review the differences between the insurance types to make sure I get this right.

upvoted 0 times

...

Norah

11 months ago

Okay, let me break this down. Mark is a consultant, so he needs coverage for his professional services. But he's also advising on safety, so there could be a liability component too. I'm leaning towards Professional Indemnity, but I'll double-check the details.

upvoted 0 times

...

Oren

11 months ago

Hmm, I'm not sure about this one. Is it possible that Public Liability insurance could also be relevant since he's working with building managers? I'll have to think this through carefully.

upvoted 0 times

...

Horace

11 months ago

This seems like a straightforward question. As a consultant advising on building safety, Mark would likely need Professional Indemnity insurance to cover any errors or omissions in his advice.

upvoted 0 times

...

Ira

1 year ago

Professional Indemnity all the way! Mark's gotta protect himself, especially when dealing with those building managers. They can be real characters, you know?

upvoted 0 times

Hollis

1 year ago

D) Property Insurance

upvoted 0 times

...

Micaela

1 year ago

C) Professional Indemnity

upvoted 0 times

...

Ashley

1 year ago

B) Product Liability

upvoted 0 times

...

Joanna

1 year ago

A) Public Liability

upvoted 0 times

...

Herminia

1 year ago

Professional Indemnity is the obvious choice here. Mark's clients are counting on his expertise, so he better have the right coverage.

upvoted 0 times

...

Anthony

1 year ago

Professional Indemnity is the way to go. I can't imagine Mark wants to risk his business over a simple slip-up in his advice.

upvoted 0 times

Gilberto

1 year ago

C) Professional Indemnity

upvoted 0 times

...

Ayesha

1 year ago

Professional Indemnity is definitely the best choice for Mark. It will protect him in case of any errors or omissions in his advice.

upvoted 0 times

...

Audra

1 year ago

D) Property Insurance

upvoted 0 times

...

Vi

1 year ago

C) Professional Indemnity

upvoted 0 times

...

Tonette

1 year ago

B) Product Liability

upvoted 0 times

...

Pearline

1 year ago

A) Public Liability

upvoted 0 times

...

Ceola

1 year ago

C) Professional Indemnity

upvoted 0 times

...

Alita

1 year ago

B) Product Liability

upvoted 0 times

...

Tamra

1 year ago

A) Public Liability

upvoted 0 times

...

Patrick

1 year ago

I'm going with Professional Indemnity as well. Building safety is a serious matter, and Mark needs to be protected from liability.

upvoted 0 times

Emile

1 year ago

I'm going with Professional Indemnity as well. Building safety is a serious matter, and Mark needs to be protected from liability.

upvoted 0 times

...

Reuben

1 year ago

D) Property Insurance

upvoted 0 times

...

Jennifer

1 year ago

C) Professional Indemnity

upvoted 0 times

...

Norah

1 year ago

B) Product Liability

upvoted 0 times

...

Keshia

1 year ago

A) Public Liability

upvoted 0 times

...

Dorathy

1 year ago

As a consultant, Mark definitely needs Professional Indemnity insurance. This covers him for any mistakes or negligence in his advice.

upvoted 0 times

Carli

1 year ago

As a consultant, Mark definitely needs Professional Indemnity insurance. This covers him for any mistakes or negligence in his advice.

upvoted 0 times

...

Mari

1 year ago

D) Property Insurance

upvoted 0 times

...

Brice

1 year ago

C) Professional Indemnity

upvoted 0 times

...

Tamekia

1 year ago

B) Product Liability

upvoted 0 times

...

Blondell

1 year ago

A) Public Liability

upvoted 0 times

...

Eleonora

1 year ago

I think Mark should also consider Public Liability insurance to cover any accidents that may occur on the building premises.

upvoted 0 times

...

Wai

1 year ago

I agree with Linette. Professional Indemnity insurance would protect Mark in case of any errors or negligence in his advice.

upvoted 0 times

...

Linette

1 year ago

I think Mark should have Professional Indemnity insurance.

upvoted 0 times

...