Recommendations follow a physical inspection by an insurance company of your premises and/or operation. The insurance companies usually inspect high-end homes, farms and business locations.

After the inspection is completed the insurer will notify you if there are any areas that should be considered to improve the overall safety and reduce the chance of your having a claim.

There is a grading system used. This is a sample of the system used by Intact Insurance.

A. Urgent - Recommendations regarding deficiencies or hazardous conditions which pose an imminent and serious loss potential. These conditions must be remedied immediately if a loss is to be avoided and coverage is to be maintained. (Must have rectified or satisfactory response within 30 business days of receiving this letter.) An example would be greasy rags stored near a heat source.

B. Important - Recommendations regarding deficiencies or conditions which pose a lost potential in terms of severity or frequency. These conditions adversely affect the evaluation of the risk quality and acceptability. Their completion is important to maintaining present terms, conditions and pricing. (Must have rectified or satisfactory response within 60 business days of receiving this letter.) An example would be no railing on a raised deck.

C. Desirable - Recommendations that affect overall risk management of the account and are in accordance with commonly accepted risk control standards but do not pose large or immediate loss potential. (Recommendations the client may wish to implement to reduce the chance of a loss.) An example would be that an alarm system should be installed to further protect a home from theft.