Question

4. a

1. Vince owns a television repair shop that is insured under
a commercial package policy. The policy includes the
building and personal property coverage form and the
causes-of-loss broad form. The declarations page indicates
that coverage applies to both the building and the named
insured's business property. Explain whether or not the
following losses would be covered under his policy.
a. A fire occurs on the premises, and the building is
badly damaged.
b. A burglar steals some money and securities from an
unlocked safe.
c. A business computer is damaged by vandals who
break into the shop after business hours.
d. A tornado touches down near the store. Several tel-
evision sets of customers in the shop for repair are
damaged in the storm.
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Answer 1

Fire damage to Vince's building, vandalism to a business computer, and potentially tornado damage to customer property would likely be covered under Vince's commercial package policy, though the tornado coverage for customer property may require additional endorsements. However, theft of money and securities from an unlocked safe might not be covered as it's typically excluded without specific endorsements.

Step-by-step explanation:

Vince owns a television repair shop insured under a commercial package policy, which includes coverage for the building and the business personal property against specific events. Here's how the insurance might respond to the described events:

• A fire damaging the building: The causes-of-loss broad form generally covers fire damage, so this event would likely be covered, enabling Vince to get compensation for the building repairs.
• Theft of money and securities: This loss is typically excluded under most property forms due to the high risk involved without special endorsements. So this might not be covered, especially because the safe was unlocked.
• Vandalism of a business computer: Vandalism is a covered cause of loss under the broad form, so the damage to the computer would typically be covered.
• Customer property damage from a tornado: While tornado damage is typically covered, customer property may need additional coverage or endorsements to be protected under Vince's policy.