Loss-control activities

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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 ?
Loss control activities such as risk assessments can favorably affect a company's EMR and subsequently lower worker's compensation insurance costs.
Asai, Yoshihiro, and Mahito Okura, 2011, "How Do Cost and Regulation Change Loss Control Activities and Insurers' Monitoring?", Journal of Insurance Issues 34(2), 172-188.
For starters, it is vital for risk managers to convince local managements of the importance to the corporation of risk exposure identification, loss control activities, tax liability minimization and premium allocation.
Risk managers in a number of industries are using GIS-based models to help plan loss control activities. They develop GIS crime indices to route delivery fleets safely, allocate security expenditures across company locations and assess the likelihood of financial loss due to crime.
Risk managers must implement environmental loss control activities with the cooperation of line personnel since those individuals have the most intimate knowledge of the opportunities to prevent or reduce loss in the work process.
"Forming a captive increased our commitment to the entire organization's loss control activities," Ms.
Linking loss control and organizational strategies can provide a foundation for establishing comprehensive, consistent and implementable loss control activities. Potential losses need to be assessed from the corporate point of view, which will lead not only to measures with a greater likelihood of avoiding and reducing loss, but also to more effective communication of the importance of risk control within the company at large.