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Let's say Aurora wants to buy a business insurance policy that protects her factory from damages resulting from fire, as well as any lawsuits filed by customers. In this case, the total cost of Aurora's insurance will be $____ Let's now assume that Aurora wants to buy insurance that covers all damages to the vehicles at her factory and any losses incurred from the interruption of daily factory operations. In this case, the total cost of insurance for Aurora will be $______

Let's say Aurora wants to buy a business insurance policy that protects her factory-example-1
User Rzlines
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1 Answer

5 votes

Given:

General liability insurance = $800

Business interruption insurnace = $1200

Property insurance = $500

Commercial auto insurance = $900

Let's answer the following questions.

(a) The total cost of Aurora's insurance if Aurora wants to buy a business insurance policy that protects her factory from damages resulting from fire, as well as any lawsuits filed by her customers.

• Here, the insurance type that protects her factory from fire is classified under the Property insurance which cost $500.

,

• The insurance type that protects the factory from any lawsuits filed by customers is classified under the general liability insurance which cost $800.

In this case, the total cost of her insurance will be:

Total = Cost of Property insurance + cost of general liability insurance

Total = $500 + $800 = $1300

In this case, the total cost of Aurora's insurance will be $1300.

(b) The total cost of Aurora's insurance assuming she wants to buy an insurance that covers all damages to vehicles at her factory and any losses incurred from the interruption of daily factory operations.

• Here, the insurance type that covers all damages to vehicles is classified under the ,commercial auto insurance ,which cost $900.

,

• The insurance type that covers any losses incurred from the interruption of daily factory operation is classified under the ,business interruption insurance ,which cost $1200.

In this case, the toatl cost of Aurora's insurance will be:

Total = cost of commercial auto insurance + cost of business interruption insurnace

Total = $900 + $1200 = $2100

In this case, the total cost of Aurora's insurance will be $2100.

ANSWER:

• (a) $1300

,

• (b) $2100

User Any
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