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NOTE: This is an unformatted excerpt from our online fire protection training library.

Authorities and Requirements

Economic

An economic stake

It is often said that the public AHJ has the power of the law and that the insurance industry has the power of economics. In other words, if a building doesn't comply with the basic standards established by the local community, the public AHJ may have the authority to tell the owner to "cease and desist" operations.

On the other hand, the insurance company issues a contract that will provide relief to the owner in the event of a loss. However, if the owner of the property chooses to not follow the requirements of the insurance company, the contract can be canceled, leaving the owner to find insurance elsewhere to protect his or her investment.
NOTE: This is an unformatted excerpt from our online fire protection training library.

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