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BeeClean Drycleaners has an all-risks policy of insurance, which includes business interruption insurance. When BeeClean Drycleaners purchased a new dry-cleaning machine, it purchased an additional

BeeClean Drycleaners has an all-risks policy of insurance, which includes business interruption insurance. When BeeClean Drycleaners purchased a new dry-cleaning machine, it purchased an additional insurance policy from another insurer, which insures BeeClean from damage and for losses resulting from equipment malfunction of the new machine. The machine was broken down for nearly one month and during that period, BeeClean suffered a business loss of $8,000. BeeClean has determined that they are covered for this loss under both policies and now wishes to recover this loss from its insurers. Which statement best describes this situation? a) BeeClean paid for two policies and can therefore recover $8,000 from each insurer. b) BeeClean will be required to recover the loss under the most specialized policy. c) BeeClean has committed fraud by seeking additional insurance to cover a loss already insured under another policy. d) BeeClean is only entitled to collect the amount of its loss, $8,000.

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