Question

While working on a customer's industrial copier in the repair facility, an employee at RZJ Electronics Repair accidentally destroys the copier, causing $3,000 in damage. What commercial property coverage might apply?

A. Extra Expense coverage
B. Legal Liability coverage
C. Business Interruption coverage
D. Employees Personal Property coverage

Answer 1

Legal Liability coverage would likely apply to the situation where an employee accidentally destroys a customer's property, such as an industrial copier, while it's under the business's control.

Step-by-step explanation:

When an employee at RZJ Electronics Repair accidentally destroys a customer's industrial copier, causing $3,000 in damage, the type of commercial property coverage that might apply is B. Legal Liability coverage. This type of insurance generally covers damages that a business is legally obligated to pay due to the destruction of someone else's property under their care, custody, or control. It does not cover business interruption, extra expense, or employees' personal property in this scenario, as those coverages apply to different types of losses.