Reference no: EM132752960

Imagine that the East Coast and Midwest recently experienced a 2-week period of unbearable cold weather and wind chill. During such a cold period do you believe commercial business owners should be required to take measures to prevent pipes from freezing (i.e. pipe insulation, turn on faucets, etc.) in order to maintain their insurance coverage? Explain why or why not.

Student Example 1:

During such a cold period, commercial business owners should be required to take their own preventative measures to avoid pipes freezing. In order to maintain insurance coverage, the business owners must show that they have taken the necessary steps to prevent such an occurrence as the insurance coverage for this situation should be treated as a last resort. If an insurance agent comes to the scene once the pipes have frozen and it is clear that little was done to prevent this, it is likely that the business will not receive sufficient funds to repair said pipes.

Insurance is utilized to minimize damages or injury's during an unforeseeable event. To effectively utilize insurance, business owners should take responsibility to prevent freezing pipes be adding insulation and turning on faucets as these are solutions that would prevent an occurrence where insurance is necessary. If the preventative measures are not enough to avoid freezing pipes, it is then time for the business owner to make an insurance claim.

Student Example 2:

Yep, I believe that commercial business owners should be required to take measures to prevent pipes from freezing (e.g. pipe insulation, turn on faucets) in order to maintain their insurance coverage because when such whether disaster occurs then the last Hope of Business and property owners is insurance coverage but in order to get claim, these commercial business owners has to show that they were taking preventive measures like proper heating in building, running water in faucet.

If Pipes are burst and Insurance company finds that there were no measures to prevent this accident of burst pipe then you may get nothing. For getting these claims in such conditions, you have to do everything in your ability to make sure that you have had taken all the measures to prevent your property from cold weather but still you face damage from burst pipes.

If you have insurance coverage then people from insurance company do proper investigation how the situation causing damage arise and what measures owners taken then they agree on giving claims to damage otherwise your insurance coverage is nothing.