Joe entered a store and approached a display of china. He was examining an extremely valuable vase and carelessly dropped it, destroying it. Which of the following is correct with respect to his liability?
A) If the store has insurance coverage, the insurance will cover his careless conduct and he doesn't have to worry about anything.
B) If the store has insurance coverage, the insurance will pay the store for the loss but may pursue Joe for repayment by suing him for negligence.
C) Joe cannot be sued for the loss because Joe is not a party to the insurance contract.
D) If the store does not have insurance coverage, they should have and so Joe has no responsibility in these circumstances.
E) Joe is responsible only if the store has no insurance coverage.

Question

Quizplus · Accepted Answer

Insurance covering the store's loss does not absolve Joe of liability for his actions. The insurance company can seek reimbursement from Joe through subrogation, where they step into the shoes of the insured (the store) to recover the amount paid out for the loss.

Joe Entered a Store and Approached a Display of China