Identify the major pure risks or pure loss exposures

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Reference no: EM132950466

SECTION A Instruction: Complete ALL questions from this section.

Case Study Smith Construction Company Ltd is building a warehouse for Raymond. The construction firm routinely leaves construction equipment at the building site overnight and on weekends. Late one night, Fred age 10, began playing on some of Smith's construction equipment. Fred accidentally releases the brake of a tractor on which he was playing and the tractor rolled down a hill and smashed into a building that was under construction. Fred was severely injured in the accident. Fred's parents sued both Raymond and Smith Construction Company Limited. John and Mary are married and own a house in Montego Bay. Their daughter, Janet, is off at college and lives in a fraternity house. Their son is in high school and there is another daughter who is an engineer and works in a local engineer business. Mary is a translator and spends many days away from home. Mary earns extra cash by babysitting at the weekend. The family home contains household furniture, personal property and a computer that John uses to prepare business tax returns on the weekend, and a laptop computer that Mary uses while traveling. The family also owns three cars. John drives a 2010 Toyota Rav 4 for both business and personal use Janet drives a 2009 Nissan Sunny and Mary drives a Mitsubishi and a rental car while traveling. Although the family-owned their home for several years, they are considering moving because of the recent increase in violent crimes in their neighborhood.

Required:

A. Based on the elements of negligence, describe the requirements that MUST be met for Smith Construction Company to be held liable.

B. Identify the major pure risks or pure loss exposures that John and Mary are exposed to with respect to each of the following: i. Personal loss exposures ii. Property loss exposures iii. Liability loss exposures

C. With respect to each of the loss exposures mentioned above, identify ONE (1) appropriate management technique that could be used to treat the exposure.

Reference no: EM132950466

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