Have you ever received loss control recommendations for your community?

What did you think when that report landed in your inbox?

If you’re like many community managers and board members, your first reaction may have been 🙄: “Uh oh. What now?”

Well, it’s time to switch your thinking!

Loss control recommendations shouldn’t automatically be viewed as bad news. In fact, they can be incredibly valuable for your community. They give you an opportunity to identify potential hazards, address problems before they turn into claims, and show your insurance carrier that your association takes risk management seriously.

So, What Is Loss Control?

Insurance carriers conduct loss control inspections because they want to better understand the properties and risks they’re insuring.

But there’s another important reason: they want associations to understand those risks, too.

Loss control inspectors are specially trained to identify hazards that could potentially lead to injuries, property damage, or insurance claims.

And let’s face it — when you walk the same property every day, certain things can start to blend into the background.

A cracked walkway. An aging railing. Overgrown vegetation. An electrical concern. Something stored where it shouldn’t be.

You may walk past these things a hundred times without giving them much thought. A trained inspector looks at your community through a completely different set of eyes.

That’s a good thing.

When Do Loss Control Inspections Happen?

Inspections can occur at different points during the insurance policy lifecycle.

Some carriers conduct an inspection shortly after binding a new policy. Others may require one before they’ll even provide a proposal.

Many carriers also reinspect their existing accounts periodically, sometimes every year, particularly when the community is large or presents more complex risks.

So, receiving an inspection notice doesn’t necessarily mean something is wrong with your community.

It may simply be part of the carrier’s normal process for understanding and managing the risk.

You Received the Report. Now What?

After an inspection, the association will typically receive a report outlining any recommendations the inspector has identified.

Those recommendations may be prioritized based on urgency, and some will be much easier to address than others.

Here’s the important part: Respond by the date the carrier gives you.

Even if the recommended work hasn’t been completed yet, let the carrier know what’s happening.

Communication matters.

If you’re gathering bids, say so. If the board is reviewing proposals, provide an update. If a contractor has been selected, let the carrier know. If the project is underway, provide an estimated completion date.

Whatever you do, don’t ignore the report.

Putting your head in the sand is NOT the way to go.

Ignoring recommendations or failing to respond can create unnecessary problems with the carrier and could potentially affect the association’s insurance options.

What If It’s a Big-Ticket Item?

Not every recommendation can be fixed by calling a handyman tomorrow morning.

Let’s say the inspector identifies balcony railings with spacing greater than four inches.

That’s potentially a major project.

It could involve inspections, engineering, contractor proposals, budgeting, board approval, scheduling, and significant expense. Depending on the size of the community, the project could take months — or even years — to fully complete.
Insurance carriers understand that.

They generally don’t expect a major capital improvement project to happen in a few days or weeks.

What they do want to see is that the association understands the issue and is taking reasonable steps to address it.

For example, you might tell the carrier:

• The association has acknowledged the recommendation.
• Proposals are currently being requested.
• The board is reviewing bids.
• A contractor has been selected.
• The project has begun.
• The anticipated completion date is X.

Providing that information goes a long way toward demonstrating that the association isn’t ignoring the problem.

Then, once the project is complete, don’t forget the final step: follow up with the carrier and let them know the issue has been resolved.

Close the loop.

Here’s an Idea: Tag Along

The next time you receive notice that your community is going to have a loss control inspection, why not tag along with the inspector?

Seriously.

Walk the property with them.

Ask questions. Find out what they’re looking at and why. Pay attention to the things they notice that you may have walked past countless times.

It’s an opportunity to see your community through a new set of eyes.

Then take what you’ve learned and incorporate it into your regular property walkthroughs.

Instead of waiting for the next insurance inspection to identify a problem, you may begin spotting potential hazards yourself.

Find the Problem Before It Becomes a Claim

That’s really what loss control is all about.

A recommendation on a report may feel inconvenient at the time, but it’s a lot better to discover a dangerous condition during an inspection than after someone gets hurt or property is damaged.

So, the next time a loss control report arrives, try to resist the eye roll.

Look at it as another tool to help you protect the community, reduce potential claims, and stay ahead of problems.

You might even identify and fix the next issue before your insurance carrier has to tell you about it.

And who knows?

You could become the superhero for your community! 🦸‍♂️🦸‍♀️

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