Loss control

An insurance company may send loss control representatives to conduct an insurance inspection, which is an on-site visit to identify potential exposures and hazards. The inspection is typically conducted by a loss control consultant or professional with an insurance loss control certification or a loss control team.

After the inspection is complete, the business owner will receive a report detailing the findings, along with recommendations for improvements. The business owner can then implement the findings or use loss control services.

Here are some common types of loss control in insurance:

• Security systems: A loss control program may recommend visible security cameras and alarms to deter criminal activity. Continuous monitoring also helps protect businesses from unauthorized access. Some systems automatically alert law enforcement to suspicious activity, which can minimize damage and losses when no employees are present.
• Deadbolts / impact doors and windows: Business access points are strengthened to prevent unauthorized access when intruders attempt to break doors or smash windows.
• Fire extinguishers / smoke detectors / sprinkler systems: Smoke detectors provide fire protection by alerting employees to the presence of smoke or fire, which allows them to evacuate or respond with fire extinguishers. Sprinkler systems activate automatically to control fire damage or extinguish fires.
• Defensive driving courses: Driver safety training involves learning how to manage difficult driving situations and avoid potential hazards, which reduces the likelihood of accidents and improves fleet safety.
• Anti-theft devices in cars: Alarms discourage vehicle theft, and GPS trackers improve the chances of recovering stolen vehicles.
• Employee background checks: Screening job applicants for criminal or financial issues may prevent employee theft, fraud, or other problems.
• Workplace safety programs: Employees receive training, and policies are enacted to prevent accidents and injuries. An ergonomics study may also be completed to minimize workplace hazards.
• Business inspections: Regular inspections are used to identify potential hazards and ensure safety protocols are followed.
• Cyber protection: Reviewing frequently used hacker tactics (such as phishing and ransomware) and educating employees on data breaches for cyber awareness.

There is a direct relationship between loss control and insurance premiums. To reduce the chances of claims, insurers encourage businesses to adopt loss control insurance practices by offering lower premiums. If enough businesses participate, insurance companies may lower premiums for all policyholders, which increases profitability.

In addition to saving money, businesses can also benefit from loss control in other ways. The time and expense of implementing a loss control program are minimal when compared to the potential costs and hassle of dealing with issues.

Additional benefits of loss control include:

• Mitigates risks: Issues are identified and addressed before they cause accidents, which protects the business's property, equipment, and employees. Steps are also taken to protect the property from break-ins and theft.
• Minimizes disruptions: Regular inspections, assessments, checklists, and employee training reduces the likelihood of breakdowns, accidents, losses, and other issues that interrupt normal business operations.
• Legal and regulatory compliance: Proactive accident risk mitigation and loss prevention helps a business comply with OSHA regulations and reduces the chances of fines.
• Improves reputation: Minimizing accidents and losses helps businesses avoid negative publicity. A strong safety record also boosts employee morale and customer confidence.