Under which condition in Craig's commercial property policy might the insurer deny coverage for his business after an accident?

In the context of commercial property insurance, when insurance coverage is in place, there are specific conditions under which the insurer may deny a claim. One significant reason is when the insurance policy has lapsed. A lapsed insurance policy typically means that the coverage has expired due to non-payment of premiums or failure to renew the policy before it was allowed to expire.

When an insurance policy lapses, the insured is not covered for any incidents occurring after the policy was no longer active. This condition protects insurers from claims when a business has not maintained active coverage. Since insurance is a contract that requires premium payments to remain valid, any lapse puts the insured at risk of being without coverage during critical times, such as after an accident.

This reason underscores the importance for businesses to stay vigilant about their insurance policies, ensuring that payments are made on time and the policy remains active to avoid gaps in coverage that can lead to significant financial losses or legal challenges following an accident or incident.