Question

Larry owns a restaurant downtown and employs his cousin Vinny as one of the line cooks. Vinny is a rather careless individual, and one night he leaves the stove on, leaking gas throughout the kitchen. When the ice machine turns on, it sparks a massive explosion. Which condition in Larry's commercial property policy indicates that he may be covered for this loss?

A. Fire and Explosion Coverage
B. Carelessness Liability Clause
C. Negligence Exclusion
D. Accidental Damage Provision

Answer 1

The loss from an explosion caused by the employee's negligence at Larry's restaurant would likely be covered under Fire and Explosion Coverage in a standard commercial property insurance policy.

Step-by-step explanation:

The condition in Larry's commercial property policy that indicates he may be covered for the loss due to the explosion caused by Vinny's negligence is A. Fire and Explosion Coverage. This coverage generally protects against losses resulting from fires and explosions, regardless of certain acts of negligence by employees. It is essential to review the specific terms and exclusions of the restaurant's insurance policy, as coverage can vary by insurer and policy. The Carelessness Liability Clause, Negligence Exclusion, and Accidental Damage Provision are not standard insurance terms but could relate to specific conditions in a policy. The most likely correct answer here would be the general Fire and Explosion Coverage, which typically employs broad terms to cover a variety of incidents including those caused by accidents.