{"id":21148,"date":"2024-01-23T16:15:26","date_gmt":"2024-01-23T16:15:26","guid":{"rendered":"https:\/\/www.clearway.co.uk\/?p=21148"},"modified":"2025-05-29T11:58:58","modified_gmt":"2025-05-29T11:58:58","slug":"commercial-landlords-can-a-property-risk-assessment-lower-your-insurance-risk","status":"publish","type":"post","link":"https:\/\/www.clearway.co.uk\/news\/commercial-landlords-can-a-property-risk-assessment-lower-your-insurance-risk\/","title":{"rendered":"Commercial Landlords: Can a Property Risk Assessment Lower Your Insurance Risk?"},"content":{"rendered":"

Professional risk management can actively lower the risk exposure an insurance provider associates with your business, property or premise \u2013 but following through on the actions identified by a formal risk assessment is essential.<\/strong><\/p>\n

Insurers levy premiums based on complex computations, incorporating aspects such as the grade of locks you use on your doors, the type of CCTV surveillance or alarm systems in place, and the potential for a fire or theft to occur and result in an insurance claim.<\/span><\/p>\n

By taking a proactive stance and addressing risks before they become the subject of an insurance claim, you can swiftly improve your evaluated insurance risk, making your company or commercial building easier and cheaper to insure.<\/span><\/p>\n\n

 <\/p>\n

How Do Insurance Providers Determine Your Insurance Risk?<\/h2>\n

Insurance risk is the potential for the insured party to submit a valid insurance claim, prompting the insurance provider to pay out, depending on the policy terms and any limitations such as a payable excess.\u00a0 <\/span>Risk is quantified by assigning a score to the possible value of the loss or claim, multiplied by the likelihood of the risk occurring.<\/span><\/p>\n

Therefore, a risk with a low likelihood, such as having all the inventory within a warehouse stolen, but with a high claim value, could attract the same insurance risk scoring as a lower value incident, such as a broken shop front window, but that is considered far more likely to happen.<\/span><\/p>\n

Businesses, public sector premises and properties with a higher risk score inevitably attract higher insurance premiums because the provider needs to reduce the risk that they will end up needing to make considerable payments.<\/span><\/p>\n

Likewise, a complex insurance scenario, or where the risks of a claimable event are very high, can make it very difficult to find an insurance provider and an underwriter who will agree to offer a policy with the protection you require.<\/span><\/p>\n

How Does a Property Risk Assessment Work?<\/h2>\n

Risk assessments are a standard across most industries and sectors. You will almost certainly require a risk assessment, renewed at least annually if you have:<\/span><\/p>\n