To reduce the risks of loss to your commercial property, you first need to identify and analyze your exposure to loss. In other words, you must know from what you are at risk as well as what you are at risk of losing before you can adequately develop a realistic, cost-effective strategy.

Identifying the risk alone may not be as difficult as identifying the loss associated with the risk. For example, fire damage often brings with it the damage from smoke and water. In addition to damaging your building and its contents, the property of employees and others may also be destroyed or damaged. Consider also the loss associated with getting your business up and running again in the event of a fire.

Probably the easiest way to identify your exposure to risk is to carefully consider each of your business operations and identify what might cause a loss in relation to that operation. Consider, then, how costly the loss might be. An agent can provide you with a risk analysis questionnaire or checklist to help guide you and keep you from overlooking any exposures.

It is important to note that not all property loss is caused by physical damage to the property. While common perils such as fire, windstorm, lightening and vandalism can cause destruction to your building and its contents, property loss can occur from the loss of use.
This can happen when a government agency, health department or utility service causes your business to temporarily shut down. Finally, consider the impact of criminal activity, including burglary and robbery, as well as white-collar crime.

Reducing Your Exposure

Your agent can provide you with the best ways to reduce your risk of loss to your property. However, a few are listed below.

• Check smoke detectors on a semiannual basis and maintain written records
• Maintain all fire safety equipment
• Maintain emergency lighting and illuminated exit signs in proper working order
• Develop a daily inspection routine of the premises, taking immediate steps to correct any hazards
• Maintain neat, orderly grounds
• Build or lease a fire-resistant building
• Avoid overloading electrical outlets
• If you live in a flood-prone area: determine whether your property is above or below the flood stage water level, now the history of flooding in your region, the warning signs of flooding and the items you need to be prepared
• Keep disaster supplies
  
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