Risk situations that affect a company’s buildings and other physical assets are called “property hazards.” Property hazards refer to the risks that could reduce a property’s value or destroy it completely.
A property hazard can take many forms, and proactive exposure reduction can safeguard businesses in the worst-case scenarios. Property risk events can stop corporate operations, cause significant financial losses, and destroy physical property.
These hazards cover a wide range, including supply chain interruptions, natural disasters, and building damage from fires. Fire, flood, and theft are the most common causes of loss for immovable property like land and buildings and moveable property like equipment and personal items.
Any kind of loss, including indirect or direct, is possible. A direct loss is an easily quantifiable monetary loss to property due to an accident.
In contrast, indirect losses result from direct/physical damages or losses already having occurred. Crops lost because of flooding are an immediate, proximate loss; the destruction of growing capacity is indirect and secondary.
What Can Cause Property Damage?
Here are some instances of hazardous conditions that can result in property damage:
- A stairwell with inadequate lighting; lighting can alert people to the presence of a corridor.
- Handrails are erected without consideration for their optimum positioning or use.
- Decks with weak construction or security could collapse with use.
- A building’s entrance with a marble floor unprotected by floor mats is prone to slipping in bad weather.
- Decorative elements next to a doorway could endanger a person.
- Unsafe stairs pose a risk to visitors.
- Isolated snow and ice patches could cause slips and falls.
Of course, there may be many more factors that might affect your property and these could depend on the type of business you are operating, how many people you have on site and even the location.
One thing you should always consider implementing is a disaster recovery plan. This is a process that you will be able to enact in the event of damage occurring to your property which will ensure that your business can get back to operating with minimal disruption.
Preparing A Disaster Relief Plan For Your BusinessWe don't like to think of all of the worst case scenarios that can befall our businesses but unfortunately there are some disasters that we need to plan for and this guest post looks at what can happen if you don't
Check What Your Insurance Covers
A property owner is covered by hazard insurance in case of damage brought on by fires, lightning, hail, wind, snow, or rainstorms, among other natural occurrences. A home’s insurance policy’s hazard coverage often covers the primary residence and adjacent buildings, like a garage.
Homeowners should confirm that certain common hazards are included in their insurance plan to be ready for any eventuality.
Tenants and guests may sustain injuries from various risks when property owners fail to maintain their properties appropriately. If this occurs, the injured party may be able to bring a premises liability lawsuit against the owner of the property and recover money from them to pay for unforeseen medical costs.
However, it is vital to note that property hazards also include e-commerce property risks such as regulatory changes, technological developments, and infringements against trademarks. All of these may lead to a reduction in the value of an intellectual property.
Few things are as reassuring as knowing that your house is safe and secure. This sense of financial and emotional safety can be abruptly shattered if your home is damaged.
It can be a time-consuming and unpleasant procedure to manage home repairs while also seeking to receive the compensation you deserve.
If your insurer or the party responsible denies coverage for the damages, get in touch with a slip and fall attorney who will alleviate much of the worry and difficulty you’ll otherwise encounter in trying to get your money back.