Assignment

Microsoft Word - HW8.doc

1) Tina’s Tiny Toys has a retail store that whose size is about 60 feet by 60 feet (3,600 square feet). She knows she needs property insurance coverage and liability coverage. Do you think she is eligible for a BOP (business owner’s policy)? Explain

2) Jason is a plumbing supplier. Next door is Julian, a sheet metal fabricator. They have separate stores. Behind them is an open lot. They long ago decided to leave the lot unfenced so they could have freer access and allow each other a little extra space as each may need from time to time. Now Jason wants to enclose his side of the back lot. Julian says Jason is building on his (Julian’s) side of the boundary, and Julian says he needs that strip for full access to his side. If they can’t resolve this dispute, what type of insurance would best address their claims as to rights to that strip of land? Explain.

3) Gavin, in Vermont, drives a snow plow and does other snow removal services in the winter. He clears a parking lot of snow on a Thursday, shoving it all to one side of the lot. He also shoveled the sidewalk between the parking lot and the stores, but did not do a good job and did not put down salt. On Saturday Charlotte fell on the ice and injured herself. She sues Gavin. Gavin has a commercial general liability policy for his work, but does not have completed operations coverage. Explain whether the policy will cover the claim or whether he should have gotten completed operations coverage. (Consider only the insurance. Ignore whether Charlotte was careful or not.)

4) The commercial general liability insurance policy provides for Personal and Advertising Injury. What personal liability insurance policy includes similar coverage?

5) Bonnie’s Bath Decorating & Design has an insurance policy with $500,000 per occurrence/ $1,500,000 aggregate. She has been using a particular bath and tile whose style she likes and the customers like. But now it turns out that after being cleaned with certain products (which was not previously known), the surfaces become slippery. Different customers slip and are hurt. Assuming each claim is legitimate, how much will Bonnie’s insurance pay each of them:

Customer 1, $150,000: _______________ Customer 2, $ 50,000: ________________ Customer 3, $600,000: ________________ Customer 4, $500,000: _______________ Customer 5: $400,000: _______________

Now let’s talk about the type of insurance Bonnie has. She does not install anything, only designs the bathrooms and specifies the products and colors. Based on what you know, do you think the insurance she should have for the claims above should be errors and omissions insurance, or would general liability insurance be enough? Explain.

6) Casey’s Cupcakes is in a mall with a movie theater. The theater is closed for 6 weeks due to a tree falling and collapsing on the theater’s roof. Business is down at Casey’s: it used to be $30,000 income per week, now it is down to $10,000 income per week. If Casey has the right insurance to pay for the decline in business, what would that be? What endorsements if any would she need? How much would that insurance pay (if anything)?