Loss Frequency

Definition
Loss frequency is how often losses will occur. Loss frequency is used to predict the likelihood of similar losses occurring in the future. An example is loss frequency for water damage if your business is located on a flood plain is likely high.

Insurance answer
If the chance of damage to property or to your capacity to perform is likely rare to occur or to develop in the future then you would have low loss frequency. This is part of equation in determining how to manage your risk. You must also consider loss severity to help you determine if insurance is part of what you need.

Talk to your agent or broker about your specific concerns. You know your business best. What are the challenges you face?