A contractor puts in a claim under a comprehensive standard general liability policy. How much is the insurance company liable for if the total damages are $5,550 and there is a $500 deductible?

The situation outlines a claim under a comprehensive standard general liability policy where there are total damages amounting to $5,550 and a deductible of $500. In this case, the amount that the insurance company would pay is calculated by subtracting the deductible from the total damages.

To determine this, you subtract the deductible ($500) from the total damages ($5,550):

$5,550 - $500 = $5,050

Therefore, the insurance company would be liable for $5,050. The correct answer reflects the actual amount the insurance provider pays after accounting for the deductible.

The choice indicating $1,300 does not adhere to standard claims processing involving deductibles and thus is incorrect. Similarly, any options suggesting $5,500 or $4,050 do not take into consideration the deductible correctly or misinterpret how the insurance coverage applies in this scenario.