What Does Loss Reduction Mean?
Loss reduction is the practice of using techniques to reduce risk for various assets. Many companies use loss reduction strategies to try to prevent themselves from experiencing major losses. For example, a company many install sprinklers in its buildings to reduce the risk of a fire completely destroying the building by spreading from room to room unchecked.
Insuranceopedia Explains Loss Reduction
Loss reduction can be extremely helpful when it comes to saving companies money. This is because major losses can be a huge financial setback for many businesses. Many companies will even hire professionals to assess their business premises to see which loss reduction techniques can be incorporated. The more loss reduction strategies that a business employs, the less likely it is that it will experience a major loss. Loss reduction can also be used for personal assets.