Insurance Inspections are a mandated part of obtaining insurance coverage for commercial properties and residential properties alike. Insurance Inspection Companies provide these inspection services on behalf of the Insurance Company who’s providing the insurance coverage for the property owner. These insurance inspections, also known as loss control inspections, field inspections and loss control surveys, are performed by insurance inspectors to ensure that the property being insured is safe for the insurance coverage and to try an attempt to prevent any losses on behalf of the building owner, insurance company and any persons who are occupying or visiting the premises.
Typically, these inspections are performed for property and casualty policies, but also are performed for general liability, workers compensation, construction job sites for contractors insurance coverage, product liability, business owners policies, manufacturers and contractors, garage operations, auto fleet coverage, mixed use property, liquor liability, homeowners insurance, restaurant coverage, day care centers, houses of worship and vacant properties.
In order to minimize their potential risk exposure, an insurance company will request that the loss control inspection is conducted by the inspection company. The term “insurance inspection” is typically associated with an inspection that occurs after a loss occurs, for example, after a commercial property has a loss from a fire, someone trips over a broken sidewalk or when someone is hurt while working, i.e. workers compensation. Loss control inspections are on the complete opposite end of the spectrum, as they are performed in an attempt to avoid any of these losses.
After the inspection is requested by the insurance company, the loss control company will assign it to one of their inspectors to perform the inspection. An inspection request will provide the needed information such as the address of the property, the type of insurance coverage, the insureds name and contact information, the policy number, as well as the insurance broker’s information and general agents information in case the insured can’t be reached to schedule the inspection.
The insurance inspector will then contact the insured and schedule the inspection. The type of coverage being provided will determine how long the inspection takes, what type of inspection report is provided and what areas of the property are being inspected. For example, a commercial property being covered for property and liability coverage will consist of the inspector inspecting the construction type and condition of the property, the exterior features such as the roof type and condition, sidewalk condition, interior and exterior walkways, type of heating, emergency lighting, type and percentage occupancy, etc.
The loss control inspector will provide the insurance inspection company with the completed report in the form of a narrative, checklist, recommendations, supplements and photos, which is then reviewed by the inspection company to make sure there are no errors within the report before sending it over to the insurance company. If recommendations are found during the course of the inspection, it is up to the insurance company to decide if these recommendations need to be complied with. In the case that there are mandatory recommendations that need to be complied with, the inspection company will send out an inspector to check to see if the recommendations were complied with. An additional report is provided to the insurance company, usually including photos that the inspector took while out in the field.
Insurance inspections are an essential part of the insurance process that often gets overlooked, unless you’re one of the parties involved. Insurance Inspection Companies play a vital role in between the insurance company and the property owner, ensuring the safety of all parties involved and reducing the risk of the insurance company, thus performing loss control inspections.
