Holiday DeCor Company is insured by a commercial general liability policy (CGL). Holiday DeCor rented a storage facility for one month to store some excess inventory

While visiting the storage facility, a Holiday DeCor employee discarded a cigarette. The resulting fire severely damaged the storage facility. Which statement is true regarding coverage of this damage under the CGL?
A) There is no coverage as the damage occurred at a rented premises.
B) There is no coverage because property damage liability is excluded.
C) The damage is covered under the fire legal liability coverage.
D) There is no coverage because an employee of Holiday DeCor caused the loss.

Answer: C