Principles of Risk Management and Insurance, 13th Edition

Application Questions

1. Ben owns an appliance and furniture store and is insured under a commercial general liability (CGL) policy written on an occurrence basis. Explain whether Ben’s CGL policy would provide coverage for each of the following situations:

   1. Ben forcibly detained a customer whom he erroneously accused of shoplifting. One month later, after the policy had expired, the customer sued Ben for defamation of character.

   2. An advertising firm sues Ben for using copyrighted material without permission when the material first appeared in a special holiday ad. Ben maintains that the ad material is original and belongs to him.

   3. Unknown to Ben, an automatic dishwasher had a defective part. One week after the dishwasher was installed in a customer’s ...