As a contractor with a general liability policy, what is the financial obligation of the insurance company if total injuries amount to $1,000 and there are $3,000 in equipment damage and $2,000 in employee injuries?

In this scenario, the correct interpretation stems from understanding the coverage limits and exclusions associated with a general liability insurance policy. General liability insurance typically covers third-party bodily injury and property damage claims, but it generally does not cover employees' injuries, which are usually addressed under workers' compensation insurance.

Given that the total injuries amount to $1,000, this figure would fall under the general liability scope if they pertain to third-party claims. However, the equipment damage of $3,000 would also generally be covered under general liability unless specific exclusions apply.

The $2,000 in employee injuries is the critical component here; since employee injuries are not covered by general liability but by workers' compensation, this amount does not contribute to the insurance company's financial obligation under the general liability policy. Therefore, only the total of the injuries related to third parties would apply.

As such, the total financial responsibility of the insurance company aligns with the exclusions and the specific provisions of general liability insurance, culminating in a total obligation of $0 due to the exclusions for employee-related injuries, confirming that the insurance does not extend to cover this cost.