AT A GLANCE
What property loss control means
Property loss control is the process of identifying physical hazards that could damage buildings, stock, equipment or operations and putting practical controls in place to prevent, contain or reduce the resulting loss.
A useful property-risk presentation should describe construction, occupancy, processes, ignition sources, utilities, fire protection, security, maintenance, housekeeping, storage, water damage controls, business dependencies and previous losses.
CONTROL AREAS
Property controls worth evidencing
- Fire: detection, alarms, extinguishers, suppression systems, compartmentation, hot-work controls and electrical inspection.
- Security: access control, intruder alarms, CCTV, perimeter protection, key management and stock-security procedures.
- Water damage: pipework maintenance, leak detection, isolation arrangements and controls for vulnerable equipment or stock.
- Housekeeping and storage: waste management, flammable materials, separation, stacking and clear access to fire protection.
- Maintenance: planned inspection of buildings, plant, electrical systems, heating and other critical equipment.
COMMON WEAKNESSES
Where property loss control can fail
- Fire or security systems exist but are not maintained or tested.
- Hot work, charging, heating or other ignition sources are poorly controlled.
- Storage arrangements allow a small incident to spread quickly.
- Leaks or utility failures are detected too late to protect stock, equipment or premises.
- Critical plant, utilities or single-site dependencies are not reflected in recovery planning.
LOSS SCENARIOS
How control failure can increase loss
01. A small ignition develops into a major fire because detection, separation or suppression is inadequate.
02. A water leak continues unnoticed and damages stock, equipment and electrical systems.
03. Theft becomes more severe because access, perimeter or key-control measures are weak.
04. Property damage causes extended interruption because a critical item of plant or supplier has no practical alternative.
QUESTIONS
Frequently asked questions
What information should be prepared for a property-risk review?
Useful information includes construction, occupancy, processes, fire and security protection, stock and equipment values, utilities, maintenance, storage, previous losses and business-interruption dependencies.
Why do maintenance and testing records matter?
They provide evidence that fire, security, electrical, plant and other controls are operating as intended rather than existing only on paper.
How does property loss control support insurance preparation?
It helps a business explain the hazards at its premises, the controls used to reduce loss and the potential impact if critical property or equipment is damaged.
For wider proposal preparation, see the DIBNI Commercial Insurance Proposal Guide.