Tanic leased office space from Landrum. A term of the lease required Landrum to fully insure the property against loss caused by fire. An employee of Tanic left a coffee maker on over the weekend. This caused a fire which resulted in serious damage to Tanic’s furniture, computers and business records.
Can Tanic claim under Landrum’s policy? Has Tanic paid any premiums? Is Tanic an insured party? If the insurer pays the claim, does it have a right of subrogation against the employee who caused the fire? What other arrangements could Tanic and Landrum have made for insurance coverage?