Jane is the owner of a hair salon in a strip mall. Lucy is the owner of the shop next door to Jane and is concerned that owing to all the chemicals handled by Jane in her business, her salon could be damaged by fire
Lucy encourages Jane to take out a contact of insurance to protect her business but when Jane showed no inclination to do so, Lucy herself tried insure Jane's building. Can Lucy do this?
A) Yes, because Lucy's business could be destroyed if a fire started on Jane's premises.
B) No, because Lucy has no insurable interest in Jane's premises
C) Yes, because under the principle of good neighborliness, the law allows one neighbour to insure the property of another.
D) Yes because anyone can take out insurance on anything they wish.
E) Only if she can prove that Jane is being negligent in not getting the insurance herself.
B
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