Page 112 - RISK Management IC86 Ebook
P. 112
Risk Management
1) Notes should be attached to property schedule showing
l basis of valuation
l depreciation policy
l main factors in stock fluctuation
If factory plans are available, furnish with notes property
values in these three categories to each building or fire
division.
Liability loss exposures
n The term "liability" in general usage is synonymous with
"responsibility" and involves the concept of penalty when a
responsibility may not have been met. Law is growing in
dimension and complexity and so is the legal activity including
'claims consciousness (i.e. tendency to sue for wrongs)'
among people. Different legal systems can produce very
different legal concepts of crime and punishments, rights and
responsibilities. Even within a single legal system there are at
least three different levels of legal environments which can
affect an organization; e.g.
a) Common Law: In essence common law is a series of
duties to others which are largely matters of common
sense
b) Statute Law: Specific legal requirements imposed on
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