Guys please help me for this!!! need it asap, around ~200 words with type!!! (Fi
ID: 349798 • Letter: G
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Guys please help me for this!!! need it asap, around ~200 words with type!!! (Finance risk manegement and insurance)
Imagine that you run a software company and lease your office space in a 30 floor office tower. On Wednesday morning you arrive at work just after 9am and are informed that a neighboring business located 3 floors above your floor suffered a major broken pipe overnight resulting in 2 feet of water being deposited across your entire office floor. Explain whose insurance, the landlord's, the insurance of the firm located 3 floors above or your firm's insurance would cover your firm's damages and losses from this incident. Specifically, what potential and actual losses will your business have as a result of the pipe breaking? For each loss, whose insurance, if in force, will cover the loss?Explanation / Answer
In this case in order to cover the firm's damage the firm's insurance will be used to recover the physical damage of the organization and that can be covered by the firm's insurance but the damage of any documents and any details of the organization that gets damaged in the process cannot be recovered by the insurance cover hence in this the firm can file a lawsuit against the organization located 3 floors above and claim an amount of compensation which will compensate the loss incurred by the organization. It is evident that the reason of the pipe breakdown is issues in the sanitary connection of the building hence the insurance cover of the building will cover the sanitary loss and repair the broken pipe of the building. The organization may have a variety of loss and each of them will be covered by the insurance of the organization or by the amount they claim for the organization located 3 floors above. There are some damages that cannot be compensated by money like the damage of documents and hard copy data and also the closing down of business for at least few days hence the organization needs to claim an amount that will compensate such loss that the organization incur.
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