In line with the above, risk surveying is a practical exercise of risk control measure, subsequent to risk
identification and analysis; conducted with a view to limiting the risk of life and property losses from fire
and other perils, by identifying the occurrence and likely spread of any risk. Basically, the main concern is
to make sure that the insured workforce, premises, facilities, equipment, processes, operations etc, are
protected from undesired consequences.
Broadly speaking, the aim of risk survey in insurance is to:
- find out if the risk offered is acceptable;
- help in determining an appropriate rate to be
charged;
- make recommendations for improvement of the
risk;
- make an estimate of the maximum amount, or
percentage of the risk that is likely to be lost in
one fire or any other loss.
The risk inspection/survey could also be undertaken to ensure compliance with local legal requirements,
but the main emphasis should be on the preservation of life and property through the practice of prudent
hazard protection measures, with a view to minimizing the likelihood of the risk materializing, or if it should
occur, ensuring that its duration and spread will be limited.