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, the potential liability for XYZ Ltd with regards to the property damage caused by the explosions. Refer to one relevent case in support of your explanation.

If XYZ Limited is sued for negligence, the clause derived from the Insurance Act 2015 on strict liabilities may be applicable in the case because it assesses the intentionality of people’s actions. The repair works done on a building on the premise of XYZ limited, and the subsequent fire that emerged from it amounts to an unintentional action on the part of the contractor.

Given that he was working as an agent of XYZ Limited, the latter suffered the risk of being sued for negligence. As stated differently, XYZ Limited is exposed to liability because it contracted the roofing expert who caused the fire in the first place. In a court of appeal decision made in Scottish and Newcastle PLC v GD Construction (St Albans) Limited 2003, it was held that a contractor was not liable for damages caused in their line of work. The case involved refurbishments of a house and involved an employer who had contracted another party to do the repair works.

The employer was supposed to take out an insurance policy that would cover damages caused by their actions or those of the contractor. This policy should have insured both parties against all types of damages that could have occurred on the property, including fire. However, the employer did not take this policy, and a fire broke out on the premise because of the ongoing repair work. Similar to the circumstances defining the current case pitting Richard and XYZ Limited, It was established that the fire was caused by negligence on the part of a subcontractor who was performing repair works on the roof of a building. The employer sued the contractor for damages associated with the building’s repair works, but the courts ruled that the subcontractor was not liable. This case demonstrates that XYZ Limited suffers exposure to the losses accrued from the actions of the contractor.

Another area of potential liability exposure to the company involves the hazardous nature of products that it was distributing – fireworks. The company has a responsibility to minimize the potential for the hazardous material to cause injury to people who are living near the storage facility. This area of potential exposure is known as product liability, and it holds manufacturers responsible for the damages caused by the sale and distribution of potentially explosive substances. Stated differently, product liability imposes a higher standard of responsibility for businesses that engage in the production, distribution, or warehousing of dangerous products.

Given that XYZ Limited was involved in the sale and distribution of fireworks, it could be reasonably expected that the company was supposed to take a high degree of care to make sure that its products did not cause harm. In cases involving product liability, manufacturers or handlers of these insurance products are often held liable for the damages caused by their products, no matter the extent of care they take to make sure that this does not happen. Therefore, XYZ Limited the risk posed by XYZ Limited should be assessed based on this standard of care.

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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. Explain, with justification, the potential liability for XYZ Ltd with regards to the property damage caused by the explosions. Refer to one relevent case in support of your explanation'. 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. Explain, with justification, the potential liability for XYZ Ltd with regards to the property damage caused by the explosions. Refer to one relevent case in support of your explanation. 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/

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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. Explain, with justification, the potential liability for XYZ Ltd with regards to the property damage caused by the explosions. Refer to one relevent case in support of your explanation." 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/.

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, the potential liability for XYZ Ltd with regards to the property damage caused by the explosions. Refer to one relevent case in support of your explanation." 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/.


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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. Explain, with justification, the potential liability for XYZ Ltd with regards to the property damage caused by the explosions. Refer to one relevent case in support of your explanation." 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/.

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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. Explain, with justification, the potential liability for XYZ Ltd with regards to the property damage caused by the explosions. Refer to one relevent case in support of your explanation." 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/.

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