Liability Claim adjusting assignment
Bob and Barb are partners in a floral shop, B&B Bouquets. They employ several floral designers: Mike, Mary and Joy. They also employ a delivery person, jack. From time to time they engage the services of Susan, an event planner, to coordinate arrangements with clients and supervise the placement of the flowers on the day of the event.
B&B contracts with David and Beth to design, assemble and deliver the floral arrangements for their wedding on July 1. David and Beth also want Susan at the event to oversee everything. On the day of the wedding, Jack calls in sick. Bob gets Mike to deliver the flowers. Mike has a fender bender on the way to the wedding and shows up 10 minutes before the ceremony is to start. In his rush to get the flowers out of the van he trips on a flower stand and wrenches his back.
Susan grabs the flowers and starts placing them on the tables. In her rush she puts one arrangement too close to an open candle placed on the table by the catering staff. The bouquet starts to smolder but no one notices it because the ceremony is starting.
During the ceremony the flowers erupt into flames causing the sprinklers to go off. The bridal party and their guests are soaked. The fire department responds to the scene and tells everyone to go home, the reception is cancelled. The newlyweds and their families incur additional expenses to feed their 300 guests at the local Chinese buffet. During the meal one of the guests falls ill and is taken to the hospital, alleging food poisoning.
B&B has a commercial general liability policy, a worker's compensation policy and a commercial auto policy.
A month after this disaster B&B receives several lawsuits. The first is filed by the party that Mike hit with the van on the way to the event. The second is filed by the Bride's parents, seeking reimbursement for the cost associated with the cancellation of the event and the embarrassment that it caused. Another lawsuit is filed by the event location for the damage to their building and contents as a result of the fire. Medical bills are submitted for the guest who became ill at the buffet. Mike also files a worker's comp claim for his injured back.
Answer the following questions:
If you are not able to answer the question indicate what information is needed in order to answer the question. If there are experts needed to help you make these determinations indicate the type of expert needed and why.
1. Determine whether B&B Bouquets has coverage for the allegations made in the lawsuits and other claims made against them.
2. Determine who may have legal liability for the fire.
3. Determine which damages may be recoverable under B&B's policies.