Risk survey (risk engineering)
An inspection of a site by an insurer's or broker's engineer to assess protections, weak points and maximum possible loss, and to make recommendations whose follow-up often conditions cover.
A risk survey is an on-site examination of an industrial or commercial site by a loss prevention engineer, on behalf of the insurer, the broker or a pool of coinsurers. The engineer assesses construction, processes, storage, fire protection, detection, automatic sprinklers, compartmentation, safety organization, exposure to natural perils and critical dependencies, single suppliers, equipment without redundancy. The engineer estimates loss scenarios and derives the estimated maximum loss and probable maximum loss, which are used to set capacity. The report contains prioritized recommendations, whose follow-up is often a condition of cover or pricing. The survey plays a dual role: a selection and pricing tool for the insurer, a prevention service for the insured, which benefits from an expert view of its vulnerabilities. It now extends to the cyber risk of industrial sites, where the engineer examines the separation between business IT and production systems. For a large risk, a missing or outdated survey is a reason for caution that the underwriter translates into price or a subjectivity.
Textbook case: during the survey of an 80 million euro logistics warehouse, the engineer finds that the sprinkler system does not cover the lithium battery storage area added last year. The engineer recommends extending it within six months; the insurer makes this recommendation a condition, failing which an increased deductible will apply to any fire starting in that zone.
Follow the research
One letter a week. First, the week's underwriting note, when one is published: a dated, argued decision, signed by Paul Bernardski. Then what the observatory published on cyber risk, political risk and insurance. No account, no tracking.
No spam, one-click unsubscribe, no data ever sold.