Loss-control activities

Loss-control activities

Actions that an insured person or company takes at the instigation of an insurance company in order to prevent accidents or losses.

Loss-Control Activities

In insurance, actions taken by a policyholder at the behest of the insurance company to ensure that reasonable steps are taken to avoid a situation on which a claim might be made. For example, if a loss-of-income insurance policy covers a situation in which an employee's long-term injury results in a loss of production, the insurance company may require the policyholder to put in place appropriate safety measures to minimize claims. One does not conduct loss-control activities for policies that cover loss of income due to acts of God, such as tornados or hurricanes, but rather for policies covering primarily or exclusively foreseeable incidents.
References in periodicals archive ?
We depart from these conventional approaches by directly testing whether loss-control activities at the household level are associated with greater insurance demand.
Following the Great East Japan Earthquake in March 2011, several households newly purchased earthquake insurance and conducted additional loss-control activities, again especially at high income levels.
In Section IV, we provide descriptive statistics on the household earthquake insurance demand and loss-control activities before or after the Great East Japan Earthquake.
In general, most of these studies have focused on whether loss-control activities at the community level promote insurance demand.
On average, Japanese households have not significantly changed their insurance purchase behavior, and rationally purchase earthquake insurance and conduct household loss-control activities even after the earthquake (Figure 4, B-2).
Figure 4 indicates some interesting tendencies concerning loss-control activities undertaken in light of earthquakes, including earthquake resistance checks and reinforcement work and/or reconstruction.
However, this does not exclude the possibility that persons who have anticipated the complete loss of a house may have already conducted loss-control activities such as seismic retrofitting and/or have saved funds to rebuild the house in the contingency of its damage or destruction.
Nevertheless, we could not find the correlation between the loss-control activities and earthquake insurance purchase.
In this paper, we attempt to investigate household insurance purchase and loss-control activities in the context of earthquake risk management by analyzing a survey of Japanese households conducted two years after the Great East Japan Earthquake.
Its services range from reviewing insurance company loss-control activities and developing workplace safety programs to consulting on fire protection systems and crisis/disaster planning.