Show Automotive Stores, LP company information. . . Property Owned or Leased Vehicles 3 stores: Las...

 

Transcribed Image Text:

Show Automotive Stores, LP company information. . . Property Owned or Leased Vehicles 3 stores: Las Cruces, Alamogordo, and Deming Show Automotive is a partnership that owns the building in Las Cruces, a strip mall with three other spaces they lease out to other businesses. The partnership leases the locations in Alamogordo and Deming. Jose Rubio (managing partner), Joseph Vasquez, and Gilbert Valdez are the Show Automotive Stores' partners. There are 20 employees, excluding the partners. Show Automotive Stores LP has in-store sales (40%), delivers parts to auto shops (30%), and also sells over the internet (30%). The partnership owns three delivery vehicles plus leases two vehicles for the partners. The partnership is looking to open a repair shop for farm equipment at their Deming or Alamogordo location, which will be on a ranch owned by Jose Rubio, the managing partner. Show Automotive contracts for legal and accounting services. Show Automotive maintains computer equipment and software for its network at the Las Cruces store, which is its headquarters. It also contracts for services with Amazon Cloud for internet and company network, and financial transactions are with a credit card servicing for all locations. Annual Sales - $5,200,000 O Deming $1,200,000 O Alamogordo $1,800,000 O Las Cruces $2,200,000 Las Cruces building, approximately 20,000 square feet, the store is about 6,000 square feet, and the remaining 14,000 square feet is leased out to three different businesses. The building is valued at $2,000,000. The store in Alamogordo is approximately 3,500 square feet and is leased. The store in Deming is approximately 2,500 square feet and is leased. Computer equipment is approximately $100,000 for all locations. Personal property and inventory amounts by location: o Las Cruces Store: O Deming: Partner Vehicles Personal Property - $25,000 Inventory - $50,000 Personal Property $15,000 Inventory - $35,000 Betterments and Improvements - $20,000 O Alamogordo: Personal Property - $20,000 Inventory - $45,000 - Betterments and Improvements $15,000 O 2020 Ford F-150 pickup-valued at $55,000 - Leased O 2022 Dodge Ram 1500 pickup-valued at $65,000 - Leased Owned Delivery Vehicles O 2018 Ford Ranger - valued at $30,000 O 2021 Chevrolet Colorado - valued at $45.000 O 2020 GMC Canyon - valued at $40,000 Based on a review of a Commercial General Liability Coverage Form and the scenario provided, answer the following questions: 1. Who would be covered under Commercial General Liability Coverage form if Show Automotive, LP is the named insured? Explain. 2. Explain the difference between Special Damages and General Damages, provide examples a Special Damage and General Damage expense. 3. What is the difference between Occurrence Coverage and Claims-Made Coverage triggers? 4. Review the Coverage B Exclusions, are there any exclusions that Show Automotive, LP should think about removing by Endorsement? Explain why there is a concern. 5. Rosa, an employee of Show Automotive, LP under a CGL policy, received third-degree burns at work when Joseph, a co-worker, accidentally spilled coffee on her arm. Rosa sued Joseph for damages. Would Joseph be an insured for Rosa's claim under the employer's (Show Automotive, LP) CGL policy? 6. Show Automotive, LP has on occurrence triggered CGL policy with a $1 million each occurrence limit, a $1 million general aggregate limit, and a $1 million products-completed operations aggregate limit. Show Automotive, LP has three claims resulting from three separate accidents occurring in the same policy period and no other claims were made against Show Automotive, LP for injuries occurring during the policy period. How much will Show Automotive, LP pay for each claim? -Claim 1 - $500,000 in damages and it is a products liability claim -Claim 2 - $700,000 in damages and it is a premises liability claim -Claim 3 - $1,100,000 in damages and it is a products liability claim Show Automotive Stores, LP company information. . . Property Owned or Leased Vehicles 3 stores: Las Cruces, Alamogordo, and Deming Show Automotive is a partnership that owns the building in Las Cruces, a strip mall with three other spaces they lease out to other businesses. The partnership leases the locations in Alamogordo and Deming. Jose Rubio (managing partner), Joseph Vasquez, and Gilbert Valdez are the Show Automotive Stores' partners. There are 20 employees, excluding the partners. Show Automotive Stores LP has in-store sales (40%), delivers parts to auto shops (30%), and also sells over the internet (30%). The partnership owns three delivery vehicles plus leases two vehicles for the partners. The partnership is looking to open a repair shop for farm equipment at their Deming or Alamogordo location, which will be on a ranch owned by Jose Rubio, the managing partner. Show Automotive contracts for legal and accounting services. Show Automotive maintains computer equipment and software for its network at the Las Cruces store, which is its headquarters. It also contracts for services with Amazon Cloud for internet and company network, and financial transactions are with a credit card servicing for all locations. Annual Sales - $5,200,000 O Deming $1,200,000 O Alamogordo $1,800,000 O Las Cruces $2,200,000 Las Cruces building, approximately 20,000 square feet, the store is about 6,000 square feet, and the remaining 14,000 square feet is leased out to three different businesses. The building is valued at $2,000,000. The store in Alamogordo is approximately 3,500 square feet and is leased. The store in Deming is approximately 2,500 square feet and is leased. Computer equipment is approximately $100,000 for all locations. Personal property and inventory amounts by location: o Las Cruces Store: O Deming: Partner Vehicles Personal Property - $25,000 Inventory - $50,000 Personal Property $15,000 Inventory - $35,000 Betterments and Improvements - $20,000 O Alamogordo: Personal Property - $20,000 Inventory - $45,000 - Betterments and Improvements $15,000 O 2020 Ford F-150 pickup-valued at $55,000 - Leased O 2022 Dodge Ram 1500 pickup-valued at $65,000 - Leased Owned Delivery Vehicles O 2018 Ford Ranger - valued at $30,000 O 2021 Chevrolet Colorado - valued at $45.000 O 2020 GMC Canyon - valued at $40,000 Based on a review of a Commercial General Liability Coverage Form and the scenario provided, answer the following questions: 1. Who would be covered under Commercial General Liability Coverage form if Show Automotive, LP is the named insured? Explain. 2. Explain the difference between Special Damages and General Damages, provide examples a Special Damage and General Damage expense. 3. What is the difference between Occurrence Coverage and Claims-Made Coverage triggers? 4. Review the Coverage B Exclusions, are there any exclusions that Show Automotive, LP should think about removing by Endorsement? Explain why there is a concern. 5. Rosa, an employee of Show Automotive, LP under a CGL policy, received third-degree burns at work when Joseph, a co-worker, accidentally spilled coffee on her arm. Rosa sued Joseph for damages. Would Joseph be an insured for Rosa's claim under the employer's (Show Automotive, LP) CGL policy? 6. Show Automotive, LP has on occurrence triggered CGL policy with a $1 million each occurrence limit, a $1 million general aggregate limit, and a $1 million products-completed operations aggregate limit. Show Automotive, LP has three claims resulting from three separate accidents occurring in the same policy period and no other claims were made against Show Automotive, LP for injuries occurring during the policy period. How much will Show Automotive, LP pay for each claim? -Claim 1 - $500,000 in damages and it is a products liability claim -Claim 2 - $700,000 in damages and it is a premises liability claim -Claim 3 - $1,100,000 in damages and it is a products liability claim

Answer rating: 100% (QA)

1 Covered Parties under Commercial General Liability Coverage Under the Commercial General Liability CGL Coverage form the named insured Show Automoti... View the full answer