How a strategic approach to your next property risk survey can yield positive outcomes at renewal
Insurers often require risk surveys to be conducted for large property assets to assist them underwriting the renewal of complex Industrial Special Risk policies.
Some policyholders respond with trepidation to such requests. However, a survey will often yield benefits for all parties concerned if approached strategically. Bellrock has developed and uses a panel of experts to provide these services. We work with our panel to identify, educate and mitigate against risk. Refer further to our article – How Bellrock’s use of third party experts delivers better results for our clients.
In this article we look at the objectives, focus and advantages of a property survey.
What are the key functions of a property risk survey?
- Assist to understand the construction and replacement value of the property to be insured
- Identify the location, surrounds and key risks pertaining to each site
- Identify unique hazards and control in respect of same
- Provide a contemporaneous review of policies and procedures including health, safety and environmental considerations
- Demonstrate the level of risk management at the site.
What are the main areas of focus for a property risk survey?
- Construction materials comprising the assets to be insured
- Plant and equipment condition and maintenance
- Security systems
- Fire equipment and compliance
- Loss expectancy
- Occupancy and operations.
How can I use this to my advantage?
Where businesses have sound risk management procedures and are making constant improvements, surveys will support the improvements. This demonstrates risk maturity and a proactive approach to risk mitigation.
Demonstrating that you have accurately identified your risks and taken proactive steps to manage them will likely attract competition amongst insurers to provide insurance quotations. This could lead to more competitive premiums and broader cover. Conversely, a lack of third party independent risk information could lead to there being little appetite and otherwise cause underinsurance or other disclosure issues.
By utilising an independent surveyor, the report goes directly to Bellrock and the Policyholder. The report will be comprehensive and outline the information above and may be provided to the entire insurance market. Alternatively, an insurer engaged risk surveyor will produce an internal document for that insurer and the client will only receive a summary of risk recommendations. Being proactive and engaging a risk expert allows the Policyholder to control the process. It is beneficial to be aware and act on risk recommendations, as insurers will dictate timeframes and implement policy restrictions until certain conditions are met.
Bellrock observes that time and resources invested in the preparation of surveys yields positive outcomes. In this way, what may be seen by Policyholders as an arduous policy requirement can in fact be leveraged as an effective asset protection tool.
For further information and advice regarding property risk management, please contact us via the form below.