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. Identify, with justification, two torts XYZ Ltd may have committed.

A tort refers to a wrongful act in law, and the remedies associated with it are known as actions in tort. The main intention of classifying tortuous actions is to protect the rights of people who may be affected by those of another party. Different classes of torts are recognized in law, and XYZ may have committed two types. The first one is negligence and the second one is a nuisance. Negligence is perhaps the most common form of tort in insurance. It is associated with different kinds of libelous actions, including death, financial loss, damage to property, and body or emotional injuries.

The tort of negligence is often included in many private insurance contracts because it is based on the premise that the actions of an insurer should be “reasonable”; otherwise, they are subject to liability. Stated differently, it requires parties to a contract to take reasonable care not to cause harm to other persons in cases where the law requires that such care should be taken. The damage to property is an important criterion for defining negligent acts because it provides grounds for conversion. The relevant statute relating to this area of insurance contract law is the Interference with Goods Act 1977.

The nuisance tort is applicable in two ways: public and private nuisance. Public nuisance was caused by the dust emerging from the movements of heavy trucks in the neighborhood. Neighbors have complained to XYZ Company about this issue without any relief. Alternatively, the noise created by the company’s activities amounts to a private nuisance tort. Causality was established when the actions of the latter caused damage to the neighbors’ property through a fire that engulfed nearby houses.

In Rylands v Fletcher (1868), it was established that a construction company was liable for damages accrued as a result of faulty work done on-site, which caused flooding on another person’s property. The court ruled that the owner of the property’s right to freely enjoy their property was infringed on. Therefore, it ordered the building company to pay for damages. Such is the case with XYZ Limited because its roof repair works infringed on the rights of its neighbors to enjoy their property.

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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. Identify, with justification, two torts XYZ Ltd may have committed'. 9 October.

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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. Identify, with justification, two torts XYZ Ltd may have committed. 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-5/

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. Identify, with justification, two torts XYZ Ltd may have committed." 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-5/.

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. Identify, with justification, two torts XYZ Ltd may have committed." 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-5/.


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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. Identify, with justification, two torts XYZ Ltd may have committed." 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-5/.

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"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. Identify, with justification, two torts XYZ Ltd may have committed." 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-5/.

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