95. Lillian owns an antiques shop and Sandy works part time for her. One afternoon, while Sandy is decorating the window display, she loses her balance and falls backward off a step stool, breaking some very expensive lamps in the process. What policy condition in Lillian's commercial property policy provides evidence that this loss may be covered?
Answer: C
No Benefit to Bailee
The "No Benefit to Bailee" condition in Lillian's commercial property policy indicates that the insurance coverage extends to losses incurred by employees, such as Sandy, while they are working. This condition suggests that the insurance will not deny coverage simply because a bailee (the person temporarily holding property) is involved in the incident.
A) Control of Property
The "Control of Property" condition primarily addresses the insured's responsibility over property in their possession but does not specifically pertain to the coverage of losses caused by employees. Therefore, this option does not directly support the potential coverage of Sandy's accident and the resulting damage.
B) Liberalization
The "Liberalization" condition refers to the insurer's ability to extend coverage if the terms of the policy are improved or expanded. However, it does not directly relate to the specific circumstances of Sandy's accident and does not provide evidence for coverage in this scenario.
C) No Benefit to Bailee
This condition clarifies that the policy will cover losses involving employees like Sandy, who may cause damage while performing their duties. Thus, it provides a strong basis for asserting that the incident involving the broken lamps could be covered under Lillian's commercial property policy.
D) Subrogation
"Subrogation" pertains to the insurer's right to pursue recovery from a third party after paying a claim. While important in the context of insurance, it does not address the immediate question of coverage for the loss caused by Sandy's actions and, therefore, does not support the claim for coverage.
Conclusion
The "No Benefit to Bailee" condition is crucial in establishing that losses incurred by employees during their work are covered under Lillian's commercial property policy. The other options do not provide the necessary evidence for coverage in this specific instance, making them less relevant to the situation at hand. Thus, "No Benefit to Bailee" is the definitive answer regarding the potential coverage of the loss.