Definition of "Inspection"

Carlos Soares real estate agent
Carlos Soares Century21 Semiao & Associates

In property or liability insurance, right retained by the company to inspect the insured premises as well as its operations in order to detect inherent structural defects and other hidden hazards. Inspections also help reduce loss frequency and severity through recommended safety engineering loss prevention and reduction procedures. In workers compensation insurance, the insurance company must inspect the business's payroll record since premiums are based on the business's gross payroll. In life insurance, the company may obtain verification of statements by an applicant and other information.

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