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?
✓ Correct Answer
The correct answer is B: They can claim loss of profit from being closed as well as $30000 for the fire damage.
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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