Holiday DeCor Company is insured by a commercial general liability policy (CGL).Holiday DeCor rented a storage facility for one month to store some excess inventory.While visiting the storage facility,a Holiday DeCor employee discarded a cigarette.The resulting fire severely damaged the storage facility.Which statement is true regarding coverage of this damage under the CGL?

Question

Quizplus · Accepted Answer

The damage caused by the fire would be covered under the fire legal liability coverage of the CGL policy. This coverage applies to fire damage that the insured may be held liable for and occurred on leased or rented premises. Since the damage was caused by the negligence of a Holiday DeCor employee, it would be covered under the policy.

Holiday DeCor Company Is Insured by a Commercial General Liability