When to Order Loss Control Surveys: Criteria for Commercial Property Lines

Loss control surveys are conducted across commercial and farm insurance to verify underwriting information, assess risk exposures, identify hazards and help prevent future claims.

From a loss control perspective, insurers benefit from property surveys by being better equipped to: support accurate underwriting, recommend preventive safety measures, and reduce the likelihood and severity of losses.

Specific criteria that trigger a commercial property loss control survey include:

High-Risk or Specialized Occupancies

If a business uses operations that inherently carry higher risks of fire, liability or damage, a survey is almost always triggered. Examples include:

• Restaurants & Hospitality. Facilities with commercial cooking equipment, deep fryers and hood/vent systems.
• Manufacturing & Warehousing. Heavy use of fire suppression systems, emergency lighting and chemical/flammable materials storage.
• Woodworking and Auto Body Shops. Operations requiring strict dust collection, spray paint booths and volatile chemical control.
• Habitational Risks. Multi-tenant apartment complexes or strip malls where life safety and liability (e.g., swimming pools, playgrounds, railings) are prominent.

Building Age & Deferred Maintenance

• Older buildings. 30 years or older, or if there is a history of deferred maintenance.

Surveyors should scrutinize:

• Electrical Systems. Presence of hazardous or outdated setups like knob-and-tube, aluminum wiring or obsolete breaker panels.
• Roofing. Evidence of deterioration, inadequate drainage, or lack of recent roof certifications.
• Plumbing & HVAC. Outdated pipe materials (e.g., polybutylene) or poorly maintained heating/ventilation systems.

Policy Changes & Underwriting Milestones

• New Business Applications. A survey should be standard when writing a new commercial policy to establish baseline risk.
• Policy Renewals. Frequently re-evaluate long-term properties to ensure conditions haven’t degraded over time.
• Increased Coverage Limits. If a business upgrades its property, renovates or requests a significant increase in property limits, a new survey may be required to verify the updated asset value and risk profile.
• Change of Management or Ownership. Businesses under new management or ownership may be more volatile to claims if the new owner or manager is not familiar with the business operations.

Recent Claims, Incidents or Vacancies

• Incident Reports. Multiple claims within a short window, or even “near miss” incident reporting, should trigger a targeted loss control survey to pinpoint the root cause of the losses.
• Vacant Properties. Partially or entirely vacant commercial buildings attract trespassers, pipe bursts and fire hazards, heavily increasing exposure and triggering immediate risk assessment.

Exposure to Natural Disasters

Properties located in regions susceptible to natural catastrophes will create the need for hazard-specific checks (e.g., evaluating roof snow loads in colder regions, or reviewing windstorm mitigation standards and flood risks).

Farm

Key criteria to consider for conducting a loss control survey include:

• Agritainment & Public Activities. Hosting agri-tourism events, corn mazes, petting zoos or u-pick operations introduces significant public liability. Surveyor will want to evaluate safety perimeters, first-aid accessibility and parking.
• High Total Insured Value (TIV). Farms with large, multi-building operations, expensive automated equipment or substantial livestock populations frequently require on-site assessments to confirm current replacement values.
• History of Losses. If a farm has a track record of frequent or severe claims, insurers will mandate a survey to identify the root cause and ensure risk mitigation protocols are implemented.
• New Construction or Renovations. Adding new structures, updating electrical systems or installing new boilers/heating units usually triggers a survey to assess the building’s infrastructure and update policy limits.
• Hazardous Operations & Storage. Farms storing large quantities of fuel, agricultural chemicals or compressed gases may trigger inspections to check for proper secondary containment, ventilation and impact barriers.
• Specialized or Complex Machinery. Specialized equipment (such as center-pivot irrigators) or intensive dairy processing systems often require breakdown coverage surveys by technical experts.

If you’re interested in learning more about our on-site and virtual Loss Control surveys, get in touch with our team.