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A local manufacturing company owns and occupies several buildings and an employee parking lot on 3 acres. The insured has a CGL policy with a $1,000,000 limit. Golf carts are used occasionally by employees to move from building to building. An employee while driving to his personal vehicle in the lot, struck a customer's car and caused $1,200 damage to the fender and headlamp. Explain is there is coverage and cite the coverage section or the exclusion. If you think this is covered by the insured, how much will be paid to the customer.

A local manufacturing company owns and occupies several buildings and an employee parking lot on 3 acres. The insured has a CGL policy with a $1,000,000 limit. Golf carts are used occasionally by employees to move from building to building. An employee while driving to his personal vehicle in the lot, struck a customer's car and caused $1,200 damage to the fender and headlamp. Explain is there is coverage and cite the coverage section or the exclusion. If you think this is covered by the insured, how much will be paid to the customer.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ee 381.

A local manufacturing company owns and occupies several buildings and an employee parking lot on 3 acres. The insured has a CGL policy with a $1,000,000 limit. Golf carts are used occasionally by employees to move from building to building. An employee while driving to his personal vehicle in the lot, struck a customer's car and caused $1,200 damage to the fender and headlamp. Explain is there is coverage and cite the coverage section or the exclusion. If you think this is covered by the insured, how much will be paid to the customer.
Transcribed Image Text:A local manufacturing company owns and occupies several buildings and an employee parking lot on 3 acres. The insured has a CGL policy with a $1,000,000 limit. Golf carts are used occasionally by employees to move from building to building. An employee while driving to his personal vehicle in the lot, struck a customer's car and caused $1,200 damage to the fender and headlamp. Explain is there is coverage and cite the coverage section or the exclusion. If you think this is covered by the insured, how much will be paid to the customer.
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