Glossary
Loss control
The inspections, safety programs and physical improvements that a business and its insurer use to make claims less frequent and less severe.
Also called: risk control, loss prevention, loss control services, risk engineering
Loss control is everything done to prevent losses or shrink them, as opposed to paying for them afterward. On the business side that means safety training, machine guarding, sprinklers, driver monitoring, security and housekeeping. On the insurer side it means loss control representatives or risk engineers who visit locations, review operations and write up recommendations.
The work splits into frequency and severity. Slip-prevention matting and driver training aim to cut how often claims happen. Sprinklers, firewalls and a prompt return-to-work program limit how costly they get. Insurers care because both move the loss ratio, and the effect shows up in your price: schedule credits and debits within state-filed limits (schedule rating), the workers' comp experience modification rate, and underwriting conditions on the policy.
The common pitfall is treating the survey as a formality. Recommendations often carry completion dates, and an open one can come back at renewal or after a loss; serious ones can support a nonrenewal. Keep a record of what you fixed and when. For what a visit looks like and how to prepare, read the guide on loss control inspections. risk management puts loss control in the wider picture of retaining, transferring and avoiding risk.
Last reviewed October 10, 2026