When underwriting a contractor who often transits property belonging to others, what is an essential question to ask?

When underwriting a contractor who frequently handles property belonging to others, it's critical to ask about the fee for transporting that property. This question sheds light on the contractor's operations and contractual agreements, which are pivotal for risk assessment. Understanding the fee structure can help identify the extent and frequency of the transportation activities, which directly correlates to the level of risk exposure for potential liability claims.

When contractors transport others' property, various liabilities can arise, including damage, loss, or theft. By knowing the fee involved, underwriters gain insights into the nature of the transactions and the value of the property being handled. This information is crucial for determining appropriate coverage limits, premiums, and necessary endorsements in the insurance policy.

Asking about the other options, such as how many subcontractors they hire, can provide useful information, but it doesn't specifically address the risk related to handling others' property. Knowing what type of insurance they hold is also important, yet it may not reveal the full picture of the risks involved with the specific activities of transporting property. Similarly, inquiries about their attendance at exhibitions have minimal relevance to the core operation of transit and handling of others' property, thus providing no significant insight into their risk exposure.