Which Causes of Loss form does Francis have for his shoe store insurance?

The correct choice signifies that Francis has the Basic Form of Causes of Loss for his shoe store insurance. The Basic Form typically covers a limited range of perils, specifically those that are explicitly listed in the policy. This coverage often includes common risks such as fire, lightning, explosion, vandalism, and theft, but does not extend to a broader spectrum of perils that may be included in other forms.

In the context of insuring a shoe store, it’s important for business owners to be aware of the limitations of the Basic Form. While it provides essential coverage, it may not adequately cover events like water damage or certain types of accidental damage that could pose significant risks to the business.

The other options represent more comprehensive coverage forms. For example, the Special Form offers coverage for all risks unless specifically excluded, providing extensive protection. The Broad Form includes more perils than the Basic Form does, further enhancing coverage. The All-Risk Form is similar to the Special Form, often providing the most extensive coverage possible for both personal and property risks.

Understanding the different levels of coverage is vital for tailoring an insurance policy that best fits the unique needs and risks associated with a specific business, such as a shoe store.