Most commercial insurance companies have either engineering departments or loss control departments. These departments are staffed by highly trained engineers or technical safety personnel. These important staff members are tasked with coming out to see and inspect businesses and properties that are insured by their carrier. And while inspections can happen any time, most of these insurance company inspections occur once the policies are written.
Purpose
The purpose of these inspections, more often than not, are misunderstood by the policy holders. Many times, the policy holder assumes the task is to double check the facts that were provided on the policy application. However, the actual reason for the inspection is to have a technically trained person review areas of potential loss and seek to develop a plan to minimize the likelihood of having a claim. Sometimes, it can be good to have a fresh pair of eyes review the business. Many times issues and problems are brought up to the owner that they didn’t realize were there.
After the Inspection
After the inspection, the business owner is then presented with a list of recommendations from the insurance company. Sometimes, but not all the time, the list of recommendations can be quite extensive or challenging to implement. Many times, the recommendations are presented as mandatory. Usually, these are loss control issues that can be life threatening safety concerns to avoid. Generally, the insurance company will require these recommendations be implemented or the policy may be canceled.
Ramey King Insurance
This article was written to be informative and to provide insight into the “why” behind commercial insurance inspections. Although the need to avoid claims is obvious from the insurance company perspective, sometimes, the policy purchased is not enough to cover a disaster. At Ramey King, we work with our clients to help manage this process and make any insurance company inspection as painless as possible.
Ramey King Insurance partners with Texas businesses and homeowners to provide the right type of coverage for their unique needs. For more details on these topics please contact Ramey King Insurance at 800-453-9691 to speak with one of our insurance specialists or visit our office at 320 Eagle Drive, Ste. 210, Denton, TX 76201. Find us online at www.rameyking.com.
