Insuring property against unforeseen incidents is an important practice in real estate. An insurance provider follows a detailed procedure before providing insurance. The survey of the said property is by far the most crucial step, as it plays a crucial role in risk assessment, claims processing, and coverage. In this article, we understand the different types of insurance surveys for a property, liability, and others.
1. Property Surveys
a. Pre-Policy Surveys – An insurance company evaluates and assesses a property before it provides the insurance. Homes and businesses are assessed by surveyors who evaluate the property’s condition. This aids the insurance provider in determining if the property meets the prerequisites for insurance coverage. It also provides information to calculate potential risks and the premium payouts.
b. Post-loss surveys – After an untoward incident like theft, fire, or major accident, the surveyor assesses the premises. During the survey, they determine the cause of the accidents and the subsequent damages to arrive at an unbiased settlement.
2. Liability Surveys
a. General Liability Surveys – These surveys are usually applicable when businesses want to insure against claims made by third parties for bodily injuries, property damage, etc. The surveyor will assess the condition of the property, business practices, safety systems, and procedures to assess potential risks.
b. Product Liability Surveys- Product liability insurance protects businesses from third-party claims if their products cause bodily injuries or damage property of the users. The surveyor will assess the manufacturing process and quality control systems to evaluate the risks.
3. Speciality Surveys –
Specialty surveys cover unique items, services, and risks not covered by standard insurance policies. Some examples are:
a. Marine or Ocean Cargo Insurance Surveys – When goods are shipped overseas there is a risk of losses due to accidents or natural calamities. Before issuing the insurance, the surveyors will inspect the cargo packaging procedures, safety and security measures, and other guidelines.
b. Cybersecurity Insurance Surveys – This insurance applies to businesses that are information-driven or deal with high volumes of sensitive classified information. The surveyor will assess the IT infrastructure and security protocols to understand the risk of breaches and cyberattacks.
Insurance surveys have multipronged benefits for the clients and the insurance provider. They help in assessing risks and mitigating them, determining the premium accurately, faster claim resolution, and preventing losses. As a result, it becomes an important step in the process of providing insurance.
