Jane\'s\' Jewelry Shop has a Commercial General Liability (CGL) policy with the

Question

Jane's' Jewelry Shop has a Commercial General Liability (CGL) policy with the following limits: General Aggregate Limit $1,000,000 Products-Completed Operations Aggregate $1,000,000 Each Occurrence Limit $500,000 Personal and Advertising Injury Limit $500,000 Fire Damage Limit $100,000 Medical Expense Limit $5,000 What dollar amount, if any, will Jane's CGL insurer pay for each of the following losses that occurred during the same policy period? (assume the losses were paid in the order presented below.) If a loss is not covered or not fully covered explain why. a. John a customer, slipped on recently waxed floors in Jane's shop and suffered severe back injury. John successfully sued Jane's Jewelry Shop for negligence and was awarded damages of $250,000. b. When one of Jane's employees accidentally dropped a heavy box on a glass display case in Jane's shop, the glass broke, causing glass to fly everywhere. Helen, one of Jane's customers, was permanently blinded in one eye by flying glass and sued Jane's Jewelry Shop. The court awarded Helen $500,000 in damages. Jane's employee was cut on the arm and had $500 in medical expenses. c. When Jane publicly accused Arthur, a customer, of shoplifting, Arthur proved to be innocent. However Arthur sued Jane for slander. Arthur was awarded $300,000 by the court

Explanation / Answer

b. When one of Jane's employees accidentally dropped a heavy box on a glass display case in Jane's shop, the glass broke, causing glass to fly everywhere. Helen, one of Jane's customers, was permanently blinded in one eye by flying glass and sued Jane's Jewelry Shop. The court awarded Helen $500,000 in damages. Jane's employee was cut on the arm and had $500 in medical expenses.

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