Why Unbundle?
Risk Logic Inc. (RLI) is a consulting engineering company that provides Loss Prevention Services. Since 1997, we have been working in regions all over the world utilizing the most advanced and current standards.
One of the key reasons to use unbundled services is to control the empirical data. This is provided within Risk Logic’s Property Loss Prevention Reports.
Unbundled Property Loss Prevention Services are an important aspect of Property Insurance. The owner of the data has a distinct advantage, and, in our opinion, the owner should always be the Insured. At Risk Logic, we provide the most comprehensive Property Loss Prevention Report in the industry at a great value to the Insured.
Insurance company reports are written for the carrier’s benefit not the insureds. Many times reports include only recommendations that are basic in nature. They provide little or no guidance as to “Why.” They have an internal version of the report and a basic “stripped down version” that goes to the insured. Risk Logic provides one report. Our report is a detailed analysis of the facility and operation that always answers the question “Why.”
Typically, most insurance carriers provide recommendations only and sometimes a very brief COPE report. At Risk Logic, we provide the most comprehensive report in the industry. Our reports provide critical information for the Insured and can be used in a variety of ways. The Risk Management department can provide the reports to insurance brokers for marketing purposes, and our reports can be used in various other departments throughout a company. These include:
- Legal – to assist with leases and High Piled Storage Permit violations
- Engineering – to understand a plant’s hazards and to provide protection methodologies for those hazards
- Construction – to assist with renovations or new construction
- Real Estate – to help understand the loss prevention standards at existing and new facilities so there is a common protection standard throughout the company
- Procurement – to get a handle on a location’s needs for fire protection maintenance and testing services
- Safety & Health – to help during their audits and for COPE information
Besides the many advantages our report has for the Insured, there is a distinct advantage for the Broker when marketing the Insured’s portfolio of locations at renewal time. Data, such as primary and secondary modifiers for RMS modeling programs, can be helpful in better understanding the financial exposure the insured has to an earthquake or windstorm peril. Also, the detailed reports provide a better understanding and comfort level of the Insured’s risks for the insurance carrier. This understanding can quantify many unknowns that are not apparent if the insurance carrier were reviewing a “Recommendation Only” report.
The cost of the inspection and report is in most cases paid by the Insured. Payment can be structured in many ways. The most common is the Insurance Carrier adding a surcharge to the Property Premium. However, this is not advantageous to the Insured since the Carrier is conducting the inspection with the Insurance Carrier’s interest first. Normally, the Insurance Carrier does not share the report or provides a brief report to the Insured. Brokers may also conduct property loss prevention inspections, but their work is sometimes not accepted by the Insurance Carriers as it is viewed as biased toward the Insured.
Risk Logic reports are accepted by the Insurance Carrier Community. Our staff is made up mostly of Professional Engineers, and we provide prescriptive recommendations based on the National Fire Protection Association (NFPA) and FM Global (FM) standards. We provide no bias to the Insured, Broker or Insurance Carriers, as all are our customers.
Please contact Risk Logic for further questions on providing unbundled Property Loss Prevention Services.