O-LevelCommerceInsurance7100/12 · Oct/Nov 2024 · Q281 Mark
A retail store suffers fire damage worth $35000. The store closes for four weeks while the damage is being repaired. The cost of the repair is $30000. The store owner has insurance policies for premises and consequential loss. Which statement best explains the store owner's insurance cover?
AThey can claim full compensation of $35000 for the fire damage.
BThey can claim loss of profit from being closed as well as $30000 for the fire damage.
CThey will only receive payment for loss of profit from being closed.
DThey will receive $65000 as compensation for the fire damage to the premises.
✓ Correct answer
B: They can claim loss of profit from being closed as well as $30000 for the fire damage.
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