Affiliated FM - The Commercial Property Insurance Specialists

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Risk Improvement

Risk Improvement Coverage Endorsement

Affiliated FM’s unique Risk Improvement Coverage Endorsement provides clients additional funds following a covered property loss to undertake physical risk improvement to better protect their properties and drive down their overall cost of risk.

Available on a policy or location basis
Flexible limits up to 10% of property damage up to £300,000
Not limited to physically damaged portion/property
Funds can be applied at any building at the location of the loss
Paid on property damage loss total (before deductible, does not include Business Interruption)

How does it Work?

	Related Links

	Risk Improvement Coverage Endorsement

	Slip Sheet

Following a covered property loss, a client can use the additional funds provided by our Risk Improvement Coverage Endorsement to enact risk improvement based on physical recommendations outlined in any FM Global Data Sheet.

Data Sheets, available online at www.fmglobaldatasheets.com, provide numerous physical enhancements and recommendations that clients can undertake to better protect their facilities and drive down their overall cost of risk.

No other insurance carrier provides this level of commitment and expertise to help our clients better protect their facilities from property loss.

Risk Improvement Coverage Endorsement in Action:

To see how this coverage might respond, here are a few fictional examples:

A client has two buildings at one location—a fully sprinklered office building and a warehouse which is only partially protected. A fire strikes the office. The property loss is £750,000 and the Business Interruption is £100,000. Their existing proVision All Risk Policy pays the total £850,000 property and BI claim and the office building is repaired.

Affiliated FM’s Risk Improvement Coverage Endorsement then provides additional funds, in this case £75,000 based on 10% of the £750,000 property damage, and the client elects to use the funds to install the remaining sprinklers to fully protect the warehouse.

A client suffers a minor fire in their manufacturing plant after an employee put a smoldering cigarette in a waste basket. Though the fire is contained by the sprinkler system until the fire department arrived to extinguish it, it caused £65,000 in property damage, with no interruption to the business. After deductible, the Affiliated FM provision policy pays the remainder, in this case £55,000.

Because funds are based on the loss before deductible, the Risk Improvement Coverage Endorsement provides an additional £6,500.

Working with the broker and their Affiliated FM account engineer, the client prioritizes the recommendations on their latest Risk Report and spends the additional £6,500 to install an automatic shutoff on their hydraulic press. In doing so, the client eliminates a major loss expectancy, reducing their overall cost of risk.

As a leader in understanding the hazards our clients face and the science of property loss prevention engineering, Affiliated FM will assist brokers and clients in identifying and prioritizing risk improvement options before and after a loss occurs. This allows them to not only understand their vulnerabilities, but apply their additional Risk Improvement funds in the most cost-effective and efficient manner.

For more information on the Affiliated FM Risk Improvement Coverage Endorsement, contact your local Affiliated FM office.

A Sustainable Choice

In conjunction with our Risk Improvement Coverage Endorsement, Affiliated FM also offers our new Sustainability Endorsement. This two-part endorsement combines the Risk Improvement Coverage Endorsement with our existing Green Coverage Endorsement. Together, the two endorsements provide a complete package of insurance coverage that not only help clients enact and maintain “green” building practices, but assists in reducing their carbon footprint to help them maintain the sustainability of their business.