Which type of personal property generally has a coverage limit of $2,500 under Commercial Coverage C?

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The correct answer identifies the personal property of others as generally having a coverage limit of $2,500 under Commercial Coverage C. This coverage is specifically designed to protect personal property that a business has in its custody but does not own. Examples include items like equipment, supplies, or inventory belonging to customers or clients that are temporarily in the business's possession.

This limit is part of the policy's terms to specify the maximum amount the insurer will pay for loss or damage to the personal property of others, recognizing that businesses often have various clients' property in their care. The $2,500 limit helps manage the insurance risk associated with the potential for numerous small claims and is a common coverage feature in commercial policies.

By contrast, business personal property, personal vehicles, and real estate improvements are typically covered under different terms or limits. Business personal property, which includes furniture, fixtures, and equipment owned by the business, often has higher coverage limits. Personal vehicles may be covered under auto insurance policies rather than commercial property policies. Real estate improvements generally pertain to the structure itself and are usually not included under the same personal property coverage, as they involve different types of asset protection.

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