Coverage for damage caused by artificial electrical currents would typically exclude which of the following?

• A. Accidental damage
• B. Lightning-induced damage
• C. Short circuits
• D. Direct electrical contact

Answer: (B)

The correct choice is based on the understanding of how coverage provisions typically handle damage caused by artificial electrical currents. Generally, policies that cover electrical damage explicitly exclude certain types of events to limit the insurer’s liability.

Lightning-induced damage is usually treated separately from other forms of electrical damage. While electrical currents from man-made sources like wiring or appliances can cause various forms of damage, lightning is considered a natural phenomenon and is often covered by property insurance under different terms. Lightning strikes typically represent an uncontrollable force that can cause significant damage, which is why many policies provide specific coverage for loss or damage caused by lightning itself, rather than exclude it.

In contrast, accidental damage, short circuits, and direct electrical contact are often seen as risks associated with the use and maintenance of electrical systems and devices. These scenarios usually fall under the general exclusions for intentional or negligent actions and specific operational risks. Since these types of damage are common and manageable, insurance policies tend to include them within their coverage, whereas lightning damage receives a distinct treatment.