Physical Hazard

Physical hazard for commercial insurance is a condition that increases the chance or creates the opportunity for a loss.

Examples of a physical hazard would be staircase without a railing, slippery floors or congested traffic. If you have poor housekeeping at your building then that is a moral hazard. If you do not have an alarm system then that could be a physical hazard.

Insurance underwriters do not like hazards because they increase the possibility of a claim occurring. So if you have hazards then you are going to pay more for your insurance. Do consider a strong risk management program with a focus on safety. Control your insurance and you will help to control the premiums you pay.