You are a claims handler for an insurer. One of the insurer’s policyholders XYZ Ltd, is a wholesale firework distributor. XYZ Ltd has a public liability insurance policy with an excess of £5,000. XYZ Ltd have stored all its fireworks in the same industrial premises for over 20 years. Recently a small residential housing estate has been built close by the industrial premises. Richard who owns a property on the housing estate that is closest to the industrial premises, has made a complaint to XYZ Ltd. The complaint related to the noise, dust and traffic caused by its company motor vehicles. Residents of the housing estate have also complained to XYZ Ltd about its vehicles regularly blocking access to their homes. A sub-contractor carried out maintenance work on the roof of the industrial premises. During the maintenance work a fire broke out, resulting in a number of explosions. These explosions caused extensive damage to several properties on the housing estate. XYZ Ltd made a claim. Explain, with justification, whether the insurer has any right of recovery against the sub-contractor.

The insurer has a right to recover damages from the subcontractor if it is proved that the claim is payable. This statement stems from the various sources of subrogation rights available to the insurer. They emerge from torts, contracts, and statutes. Therefore, if the subcontractor had property insurance, the insurer had a right to recover damages from such a policy. These subrogation rights are found under the tort of negligence.

Answer by Academic.tip's expert
An answer to this question is provided by one of our experts who specializes in law. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2022) 'You are a claims handler for an insurer. One of the insurer's policyholders XYZ Ltd, is a wholesale firework distributor. XYZ Ltd has a public liability insurance policy with an excess of £5,000. XYZ Ltd have stored all its fireworks in the same industrial premises for over 20 years. Recently a small residential housing estate has been built close by the industrial premises. Richard who owns a property on the housing estate that is closest to the industrial premises, has made a complaint to XYZ Ltd. The complaint related to the noise, dust and traffic caused by its company motor vehicles. Residents of the housing estate have also complained to XYZ Ltd about its vehicles regularly blocking access to their homes. A sub-contractor carried out maintenance work on the roof of the industrial premises. During the maintenance work a fire broke out, resulting in a number of explosions. These explosions caused extensive damage to several properties on the housing estate. XYZ Ltd made a claim. Explain, with justification, whether the insurer has any right of recovery against the sub-contractor'. 9 October.

Reference

Academic.Tips. (2022, October 9). You are a claims handler for an insurer. One of the insurer's policyholders XYZ Ltd, is a wholesale firework distributor. XYZ Ltd has a public liability insurance policy with an excess of £5,000. XYZ Ltd have stored all its fireworks in the same industrial premises for over 20 years. Recently a small residential housing estate has been built close by the industrial premises. Richard who owns a property on the housing estate that is closest to the industrial premises, has made a complaint to XYZ Ltd. The complaint related to the noise, dust and traffic caused by its company motor vehicles. Residents of the housing estate have also complained to XYZ Ltd about its vehicles regularly blocking access to their homes. A sub-contractor carried out maintenance work on the roof of the industrial premises. During the maintenance work a fire broke out, resulting in a number of explosions. These explosions caused extensive damage to several properties on the housing estate. XYZ Ltd made a claim. Explain, with justification, whether the insurer has any right of recovery against the sub-contractor. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-the-insurers-policyholders-xyz-ltd-is-a-wholesale-firework-distributor-xyz-ltd-has-a-public-liability-insurance-policy-with-an-excess-of-5000-xyz-3/

References

Academic.Tips. 2022. "You are a claims handler for an insurer. One of the insurer's policyholders XYZ Ltd, is a wholesale firework distributor. XYZ Ltd has a public liability insurance policy with an excess of £5,000. XYZ Ltd have stored all its fireworks in the same industrial premises for over 20 years. Recently a small residential housing estate has been built close by the industrial premises. Richard who owns a property on the housing estate that is closest to the industrial premises, has made a complaint to XYZ Ltd. The complaint related to the noise, dust and traffic caused by its company motor vehicles. Residents of the housing estate have also complained to XYZ Ltd about its vehicles regularly blocking access to their homes. A sub-contractor carried out maintenance work on the roof of the industrial premises. During the maintenance work a fire broke out, resulting in a number of explosions. These explosions caused extensive damage to several properties on the housing estate. XYZ Ltd made a claim. Explain, with justification, whether the insurer has any right of recovery against the sub-contractor." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-the-insurers-policyholders-xyz-ltd-is-a-wholesale-firework-distributor-xyz-ltd-has-a-public-liability-insurance-policy-with-an-excess-of-5000-xyz-3/.

1. Academic.Tips. "You are a claims handler for an insurer. One of the insurer's policyholders XYZ Ltd, is a wholesale firework distributor. XYZ Ltd has a public liability insurance policy with an excess of £5,000. XYZ Ltd have stored all its fireworks in the same industrial premises for over 20 years. Recently a small residential housing estate has been built close by the industrial premises. Richard who owns a property on the housing estate that is closest to the industrial premises, has made a complaint to XYZ Ltd. The complaint related to the noise, dust and traffic caused by its company motor vehicles. Residents of the housing estate have also complained to XYZ Ltd about its vehicles regularly blocking access to their homes. A sub-contractor carried out maintenance work on the roof of the industrial premises. During the maintenance work a fire broke out, resulting in a number of explosions. These explosions caused extensive damage to several properties on the housing estate. XYZ Ltd made a claim. Explain, with justification, whether the insurer has any right of recovery against the sub-contractor." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-the-insurers-policyholders-xyz-ltd-is-a-wholesale-firework-distributor-xyz-ltd-has-a-public-liability-insurance-policy-with-an-excess-of-5000-xyz-3/.


Bibliography


Academic.Tips. "You are a claims handler for an insurer. One of the insurer's policyholders XYZ Ltd, is a wholesale firework distributor. XYZ Ltd has a public liability insurance policy with an excess of £5,000. XYZ Ltd have stored all its fireworks in the same industrial premises for over 20 years. Recently a small residential housing estate has been built close by the industrial premises. Richard who owns a property on the housing estate that is closest to the industrial premises, has made a complaint to XYZ Ltd. The complaint related to the noise, dust and traffic caused by its company motor vehicles. Residents of the housing estate have also complained to XYZ Ltd about its vehicles regularly blocking access to their homes. A sub-contractor carried out maintenance work on the roof of the industrial premises. During the maintenance work a fire broke out, resulting in a number of explosions. These explosions caused extensive damage to several properties on the housing estate. XYZ Ltd made a claim. Explain, with justification, whether the insurer has any right of recovery against the sub-contractor." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-the-insurers-policyholders-xyz-ltd-is-a-wholesale-firework-distributor-xyz-ltd-has-a-public-liability-insurance-policy-with-an-excess-of-5000-xyz-3/.

Work Cited

"You are a claims handler for an insurer. One of the insurer's policyholders XYZ Ltd, is a wholesale firework distributor. XYZ Ltd has a public liability insurance policy with an excess of £5,000. XYZ Ltd have stored all its fireworks in the same industrial premises for over 20 years. Recently a small residential housing estate has been built close by the industrial premises. Richard who owns a property on the housing estate that is closest to the industrial premises, has made a complaint to XYZ Ltd. The complaint related to the noise, dust and traffic caused by its company motor vehicles. Residents of the housing estate have also complained to XYZ Ltd about its vehicles regularly blocking access to their homes. A sub-contractor carried out maintenance work on the roof of the industrial premises. During the maintenance work a fire broke out, resulting in a number of explosions. These explosions caused extensive damage to several properties on the housing estate. XYZ Ltd made a claim. Explain, with justification, whether the insurer has any right of recovery against the sub-contractor." Academic.Tips, 9 Oct. 2022, academic.tips/question/you-are-a-claims-handler-for-an-insurer-one-of-the-insurers-policyholders-xyz-ltd-is-a-wholesale-firework-distributor-xyz-ltd-has-a-public-liability-insurance-policy-with-an-excess-of-5000-xyz-3/.

Copy