Fig. 1 shows a small grocery shop after a water pipe burst overnight. The owner has insurance cover for stock but is unsure whether the damaged ceiling is i...
Question 1 Report
Fig. 1 shows a small grocery shop after a water pipe burst overnight. The owner has insurance cover for stock but is unsure whether the damaged ceiling is included. The insurance company asks the owner to identify each type of loss before making a claim.
(a) State the item in Fig. 1 that is the shop's stock. [1]
(b) Identify one reason why the business should check its insurance policy before claiming for the ceiling. [1]
Answer Details
(a) The shop's stock is the wet stock, meaning goods held for sale. [1]
(b) The owner must check whether the policy includes building damage, such as damage to the ceiling, rather than only stock. This avoids making a claim for something excluded from cover. [1]
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