Property loss control can range from simplistic insurance surveys with recommendations for improvement conducted by semi-technical staff to comprehensive property risk reports conducted by professional engineers.
All companies are faced with uninsured loss exposures due to general insurance exclusions or simply the imposed or elected excess. It is in the interest of all companies to identify and control their loss exposures. There is considerable overlap with many property risk exposures and they can often also represent a combination of liability, environmental, business and workplace safety exposures.
Property loss control starts with management interest and the implementation of management control systems which may include:
- Emergency Response procedures and training
- Recorded Hazard Inspection Programs
- Security procedures
- Housekeeping standards and training
- Hot Work control systems
Physical protection systems for property risk exposures should always be considered in terms of cost benefit; what is the loss expectancy and frequency before and after protection systems are installed? what is the cost of protection? and will there be some incentive in regard to insurance cost? It is also important to consider statutory compliance as well as compliance to company standards.
For clients faced with adverse underwriter acceptance, more sophisticated risk engineering solutions are usually needed to allow either insurance risk transfer or risk acceptance by the client with peace of mind.
Highly protected risk engineering solutions can be made available including confirmation of automatic sprinkler fire protection system hydraulic calculations and water supply testing.
