The Commercial Property Basic Cause of Loss Form will cover losses caused by which of the following?

The Commercial Property Basic Cause of Loss Form is designed to provide coverage for specific perils that can cause damage to commercial property. In this case, the correct answer is sprinkler leakage. This is because the Basic Cause of Loss Form explicitly includes coverage for certain types of water damage, including damage caused by the leakage from sprinkler systems. This coverage is necessary as it helps protect businesses from the potential financial losses that can occur due to unexpected sprinkler system failures.

While fire damage is a significant peril typically covered under various insurance policies, it is not exclusive to the Basic Cause of Loss Form, which may not cover every situation involving fire. Accidental discharge of water, in a general context, may also be covered but could fall under more specialized forms like the Special Cause of Loss Form or additional endorsements, rather than the Basic form. Acts of terrorism are not typically covered under the Basic Cause of Loss Form unless there are specific endorsements or additional policies taken out to include such events, given their complex nature and risk assessment.