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  • Kamini Patel

How Insurers View Your Business's Risk Profile

Updated: Oct 6


Ever wondered what exactly insurer's look into when analysing the risks associated to your commercial property? Knowing what goes on behind the scenes could significantly impact your ability to access the type of insurance required, at a price that is affordable.

Let's take a look into some of these insider tips that can tell you how insurer's asses the risk profile for your business's property. Managing or minimising these risks could end up putting you in a position that's in your favour.



The Quality Of Your Property

Insurers need to know that the property is in good condition and has satisfactory structural elements. You're more likely to get an unfavourable risk assessment if your building is in poor shape.

For example, when was the building constructed? What materials were used to build the property? What is the overall condition of the property? Is there any external cladding or asbestos in the building? What's the location and the climate like?

Rectifying and addressing these problems can significantly reduce the risk assessment of your commercial property. These are also some good questions to ask when you're in the market to buy a new property for your business.

Maintenance Of The Property

Insurer's are likely to asses whether regular maintenance of the property is considered. Including factors such as; regular checks to fire alarms and sprinkler systems, when the property's main power board was checked for faults, whether CCTV cameras are operating and if there is security in place for theft or break ins. They will also ask questions to see if the building is regularly checked for rubbish build up- including combustible materials that have an increased risk of fire.

It's always a great idea to have regular checks and create systems to ensure the upkeep of the building. Not only will these checks ensure that your property is safe in the long run, it will also indicate to the insurer that these safety factors have been considered and systems are in place to protect your building.

Usage Of The Property

A major deciding factor in assessing the risk profile of your commercial property is what kind of business will be operating on the premises. Understandably, an insurer will rate the risk profile of a retail store differently than it would for a restaurant or a factory. The nature of the business will be used by an insurer to calculate the insurance for; loss of rental income, risk exposure of the property and public liability insurance.

There will be a focus on the everyday operational activities that occur as part of the business. What are the hazards? What systems are in place to manage these hazards?

Even some of the finer details, such as; the number of tenants, lighting of the premises and the opening hours can link directly to the likelihood of break-ins and perhaps even the physical security of the property. For example, insurers will consider the risk of vandalism, squatters, arson, graffiti, broken windows and other such damage.

Don't Fret, We're Here To Help.

The factors that have been outlined here, are just some of the general considerations to think about when it comes to improving your property's risk assessment. And while this can seem like quite a daunting process, you don't have to feel like you are alone.

This is what your insurance specialist is for. Insurance brokers are here to run through a detailed process of identifying the risks and hazards associated with your commercial property. Having this knowledge means you are able to put plans and systems in place, which will not only improve your risk assessment but will also aid in protecting your property in the long run.


General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

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