The value of business personal property at Kim's business fluctuates periodically, which is due largely to fluctuations in the value of inventory on hand. Kim's property insurance policy requires the periodic reporting of business personal property. The limit of insurance is $500,000. Kim believes she can save money by underreporting the value of inventory. Last period, she reported only $200,000 when the actual value was $400,000. Shortly after filing the last report, the value of the inventory increased to $500,000. The inventory was totally destroyed when a fire occurred. Ignoring any deductible, what is the amount that Kim's insurer will pay? Explain your answer.
Answer to relevant QuestionsRichard owns and operates a small furniture store. In addition to Richard, the firm employs two sales representatives. Richard's insurance agent advises him that the store can be insured under a businessowners policy (BOP). ...Explain the following provisions in the building and personal property coverage form:a. Covered propertyb. Additional coveragesc. Optional coverages1. Lastovica Construction is insured under a commercial general liability (CGL) policy. The firm agreed to build a new manufacturing facility for the Smith Corporation. A heavy machine used by Lastovica Construction ...Explain the difference between an occurrence policy and a claims-made policy.Explain the insuring agreements that typically appear in a directors & officers (D&O) liability policy.
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