To determine the liability of the insurance company under the 80% coinsurance clause, we can use the formula:

$\text{Insurance Liability} = \frac{\text{Amount Insured}}{\text{Required Insurance}} \times \text{Damage Amount}$

Where:

• Amount Insured is $209,625 (the insured amount).
• Required Insurance is 80% of the store's value, which means $80\% \times 406,250 = 325,000$.
• Damage Amount is $192,000.

Step 1: Calculate the coinsurance ratio

$\text{Coinsurance Ratio} = \frac{209,625}{325,000} \approx 0.644$

Step 2: Calculate the insurance company's liability

$\text{Insurance Liability} = 0.644 \times 192,000 \approx 123,168$

So, the insurance company's liability is $123,168.

Would you like further details or have any questions? Here are some related questions for deeper understanding:

1. How is a coinsurance clause beneficial to insurance companies?
2. What would be the insurance liability if the store was insured for $300,000?
3. How would the insurance company's liability change if the damage amount were higher than $192,000?
4. Why might businesses choose insurance amounts less than the required coinsurance percentage?
5. Can a policyholder recover the full amount of the damage if they don't meet the coinsurance requirement?

Tip: Coinsurance clauses are designed to encourage policyholders to insure their property close to its full value, ensuring fair premium payments for the risk covered.