What are Insurance Inspections?

After purchasing an insurance policy, it’s not uncommon to receive a call from an inspection agency. They’ll likely need to perform an inspection, but what does that mean? What are they looking for? And why is it necessary?

Let’s take a look at these questions and more!

What is an Insurance Inspection?

When you purchase liability or property insurance, most providers will require a post-policy inspection. This inspection is to validate information from the quoting or policy process, and to look for obvious potential claims.

Miscommunications happen, and inspections help clarify misunderstood or misrepresented information. These inspections also often turn up common factors that could lead to claims—such as expired fire extinguishers, slippery stairs, and broken exit lights.

What are Recommendations?

In the context of insurance inspections, “recommendations” are things the policyholder needs to fix. Most businesses are required to have a functioning, non-expired fire extinguisher on the premises. If the insurance inspector notices that an extinguisher has expired, they’ll make a recommendation that it needs to be replaced.

Usually, these recommended fixes are small, common-sense preventative measures. Fixing them for the sake of the insurance probably won’t be a big deal.

Who Employs These Inspectors?

Most often, these inspectors work for third-party agencies the insurance company hires to verify the information they have. They don’t know everything about you or your policy, they’re simply checking to make sure the information they have lines up with what they find on the premises.

It’s worth noting that the inspectors rarely ever make any sort of judgement. Instead, they’re simply providing the information they’ve gathered to the insurance agency.

What Happens if There’s a Discrepancy Between the Provider’s and Inspector’s Information?

If the inspector finds a problem like a broken exit light or expired extinguisher, the insurance company will likely seek confirmation that the error’s been corrected. 

Occasionally, the inspector will provide a sales number different from the one the policyholder remembers receiving. In these instances, the policyholder simply needs to confirm the proper number with the insurance company.

There will be plenty of time to make these corrections. If you refuse to make corrections, or refuse the inspection in general, the insurance company will likely cancel your policy.

Conclusion

If you’re still unsure what your insurance inspection will entail, you should have a discussion with your trusted independent insurance agent. If you don’t have a trusted independent insurance agent, or would like a second opinion, feel free to reach out to us at D&A insurance!