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2. Diana is the sole proprietor of a bakery, Diana's Bakery, that occupied the first floor of a two-story building owned by a real estate

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2. Diana is the sole proprietor of a bakery, Diana's Bakery, that occupied the first floor of a two-story building owned by a real estate agency. The agency used the second floor for its office, while leasing the first floor to Diana. (25 points) One afternoon in June 20X2, as Diana was caramelizing sugar on a crme brle with a small blowtorch, she unwittingly used the open flame too close to a stack of paper bags. ignited the paper bags, causing a fire that quickly grew out of control and destroyed the building and the business personal property of the bakery and the realtor. Diana and her employees, as well as the employees of the upstairs office, escaped uninjured, but a customer of the real estate agency was seriously injured when he tripped and fell down the stairs while evacuating the building The blowtorch The real estate agency made a claim against Diana for the loss of its building and business personal property. The injured customer made a claim against Diana for his bodily injury Diana submitted a claim to her CGL insurer to pay for the damage to her business personal property. The insurer determined that Diana was legally liable for all of the damages claimed by the real estate agency and its customer. Therefore, if the insurer also determines that the claims are covered under the CGL, it will settle the claims out of court, thus avoiding any legal fees or defense costs. Item Property damage to Diana's business personal property Property damage to bakery premises (building only) Property damage to remainder of building Property damage to realtor's business personal property Bodily injury to the agency's customer Damages $60,000 $150,000 $200,000 $75,000 $500,000 Diana's Bakery is covered under a CGL policy (occurrence version) with no deductible and no endorsements. Diana does not have any other commercial insurance covering her bakery operations or the building and her business personal property

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