A warehouse installs a sprinkler system and also buys property insurance for fire loss. Which statement best describes this treatment combination?
Select an answer to reveal the explanation.
Short Explanation
Sprinklers cut the fire down; insurance helps with what still burns. Using both is normal — treatments aren't mutually exclusive when they tackle different parts of the same problem.
Full Explanation
Risk treatments are not mutually exclusive. Engineered reduction (sprinklers) lowers likelihood or severity of fire loss, while insurance transfers remaining financial impact. Combining strategies is appropriate when each addresses a different aspect of the exposure and residual risk stays within appetite.