What Is Loss Control?
Of course you are familiar with insurance, but are you aware that insurance is just one
of a variety of methods for controlling your personal exposure to loss? Insurance is a
method of loss control. Loss control is important because your personal environment is
filled with opportunities where losses can occur. Most folks would like to minimize their
chance of suffering a significant loss. The process of identifying and acting upon
situations which may lead to losses is called "loss control."
Loss control may involve both simple and complex ways to reduce the likelihood of
facing a loss. Besides insurance, you can choose to use protective devices, oral or
written contracts to shift the responsibility for a loss, avoid ownership of items that
may cause a loss (such as large pets), avoid dangerous hobbies and activities, or change
your environment. Let's look at some areas where you might exercise loss control.
Loss Control With Your Automobile
- Use a bike or public transportation instead of owning your own car
- Borrow or rent a car when needed
- Take a defensive or advanced driving skills course
- Practice defensive driving
- Obey traffic laws
- Adjust driving habits according to driving conditions
- Park or store your car where there is greater security
- Install security alarm and/or other anti-theft devices
- Properly maintain the car in good condition, especially safety devices such as brakes
- Purchase or use cars that have higher safety ratings
- Don't lend your car to inexperienced or inconsiderate drivers
- Have an emergency kit available, including first aid
Loss Control In Your Home
- Keep the inside and outside of the home in good repair
- Carefully store flammable liquids
- Install security alarm and/or other anti-theft devices
- Consider an apartment or condo which avoids certain risks of home ownership
- Warn visitors about any known hazards in your home
- Avoid running a business from your home
- Take precautions when your premises includes attractive nuisances such as playsets and swimming pools.
- Keep dangerous objects out of the reach of children
- Carefully scrutinize activities that may create a bigger exposure to loss such as
dangerous hobbies or highly visible activities (volunteer work for organizations that may
create extra chances for losses)
- If you are involved in high risk hobbies or activities, get the training and/or take
precautions to be sure that your participation is as safe and responsible as possible
- Take care with heating and electrical devices and systems (such as portable heaters,
loads on electrical circuits, etc.)
- Keep first aid kit available
- Have a fire escape plan, including any needed safety devices (such as escape ladders
from 2nd floor exits)
Miscellaneous Loss Control
- Store important papers in a secure, fire-resistance box or even in the corner of a freezer.
- Keep all the negatives of photos, so they can be reproduced
- Make videotapes of personal property as a record of your possessions
- Make copies of personal videos
- Arrange to exchange and keep important papers and mementos such as copies of videos and photos with friends so they're easier to access and less expensive than storing in a safety deposit box
Of course the help of an expert is invaluable and your insurance agent is a very
helpful source for reviewing any actions you're considering to reduce your chances of
facing a loss. So contact your agent for his or her expert assistance.
COPYRIGHT: Insurance Publishing Plus, Inc. 1998
All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.
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