Which of the following is an example of an exposure to risk for builders?

The scenario involving tools dropped from higher floors is a classic example of an exposure to risk in the construction industry, particularly for builders. This particular risk directly impacts the safety of workers on site and bystanders. When tools or materials fall from heights, they can cause significant injury or even fatalities, leading to liabilities for the builder. In the context of risk management, this situation represents a tangible hazard that can result in bodily harm, property damage, and subsequent claims against the builder's insurance.

While the other options do involve risks, they do not represent the physical, immediate risks associated with the construction site in the same way. Fire damage from construction can certainly be a significant risk, but it often deals with broader insurance considerations and is more related to property insurance liability than immediate physical exposure. Employee theft is indeed a risk but pertains to the internal security and loss prevention measures of a construction company, rather than an immediate exposure during active building operations. Pending permits represent a regulatory risk but aren't a direct exposure to physical harm or accidents on site.

Understanding these nuances helps builders and their insurers to identify and mitigate specific risks effectively, ensuring a safer work environment.