The Importance of Inspections for Commercial Insurance

Should you be allowed to operate a business if the facilities, systems and safety conditions are not up to current standards? Should your insurance carrier continue to offer you a lower rate or even cover you at all? With an inspection, your insurance carrier can verify all the statements you have made to ensure your rate is satisfactory and your policy factors in all risks.
In Connecticut, thousands of apartment buildings go uninspected by local authorities and insurance carriers each year. On a local level, small budgets and a lack of staff often make this a challenge to take on. For those who live in these dwellings, no inspections proliferate fire and building hazards, resulting in tenant injuries and incidents that destroy property and leave many homeless.
In Connecticut forgetting annual inspections actually goes against state fire code mandates, which require schools, dance clubs, liquor stores and residential buildings housing three or more families to complete an annual inspection.
For Apartment Buildings
If you’re looking to attract future tenants, the property’s quality – from the units themselves to the grounds – often proves to be a deciding factor. When you do not put in the effort, others notice the following:

• Overall, your building looks poorly maintained.
• It doesn’t look updated in terms of design and safety features.
• It falls short of market standards.

An assessment often:

• Identifies issues you might not have seen otherwise. For instance, older pipes or wiring that needs to be replaced.
• Catches these issues early, so you can repair and update your facility before a problem occurs.
• Helps you save money long-term, so you’re not stuck with higher premiums and equally high fines.

What might be examined during an inspection of your building?

• Landscaping: Are your grounds safe for residents and visitors?
• The electrical system and appliances. Older systems may be unsafe and not as energy efficient, which can drive up your premiums.
• The structure of both the building and apartments, from pest and mold issues to factors affecting tenants’ health and safety.

After your inspection and scheduled repairs, always make sure the job was fully completed and up to standard.
For Other Commercial Uses
The issues above are not solely related to apartment buildings – they can apply to any enterprise with one or more commercial facilities. On a larger scale, an inspection for insurance purposes:

• Helps determine the building’s accurate property value.
• Assists with preventing losses and insurance fraud.
• Verifies all information listed on your policy and helps with establishing proper limits.
• Identifies potential fire hazards, including stored flammable liquids, improperly installed sprinklers, cooking equipment outside of a restaurant area and other factors that can increase your exposure.
• Identifies liability hazards, such as slip and fall concerns, swimming pools that need fencing and insufficient cleaning and disposal practices.
• Makes sure your facility meets all current building codes. Your grounds will be assessed for carbon monoxide and smoke detectors, fire extinguishers and properly labeled exit signs.
• Gives you recommendations for risk reduction.

Does your business need an inspection? Maybe you need to update your coverage for improvements you have made to the property. To get started, give us a call at 203.439.2815.