Managing Losses

Managing Losses

What Is Loss Control?

Insurance is just one of many methods for controlling the chance that you'll suffer from accidental losses. Insurance is a method of loss control. 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 that 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 to someone else, 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 - Automobile

Use a bike or public transportation instead of owning your own car
Borrow or rent a car only when needed
Take a course on defensive or advanced driving skills
Practice defensive driving
Obey traffic laws
When appropriate, voluntarily yield right of way
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 - Home

Keep your home and surrounding access ways in good repair
Carefully store flammable liquids and dangerous chemicals
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 second floor exits)

Loss Control - Miscellaneous

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 or digital recordings of personal property as documentation of your possessions
Make copies of personal videos
Be sure to carefully read contracts or agreements before accepting them
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.

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