What is Loss Control?
Loss control is a risk management strategy used to prevent or reduce the severity of potential losses, particularly in the context of business or personal insurance. It involves identifying potential hazards and implementing safety measures to avoid accidents, damage, or other incidents that could result in insurance claims.
In property insurance, loss control might include installing fire alarms, sprinkler systems, or burglar alarms to prevent or minimize damage to property. For auto insurance, loss control could involve safe driving practices, vehicle maintenance, and safety features such as anti-lock brakes.
Insurance companies often provide loss control services to their clients, offering assessments, safety advice, and recommendations to reduce risks. Policyholders can lower their premiums, avoid claims, and maintain a safer environment for themselves and their property by taking proactive steps.
The effectiveness of loss control can significantly impact insurance costs and coverage availability, as insurers view those who implement loss control measures as lower risk.