Chubb: Choose Building Sites Carefully

Loss control specialists at the Chubb Group of Insurance Companies recently issued statements warning companies to carefully evaluate security risks for potential building sites before breaking ground.

“From a site selection standpoint, you can better manage your loss potential through good site planning,” said James Titterton, assistant vice president, Chubb & Son, and loss control practice leader, Chubb Commercial Insurance, New York. “For example, if you’re planning an urban setting you will have a different viewpoint on security controls than you would in a rural setting,” he said.

Although urban and rural settings pose different security challenges, both can be protected. In urban settings, get to know the neighbors. Even if your business is not a potential target for criminal activity, the adjacent facilities may be. If their facilities are attacked, your operations might be disrupted as well. In a rural setting, a business may consider a facility that is easily visible and not shrouded by shrubs and trees.

“If your business is a likely target for terrorists or burglars, it’s best if the building is located in a place that creates concerns about getting away,” said Victor Sordillo, vice president, Chubb & Son, and global technical services manager for loss control services, Chubb Commercial Insurance. “You don’t want to make it easy for terrorists to hop on a major highway and have multiple directions to choose from. You want to create an environment that traps them at the facility if an alarm goes off.”

“If an insured has a very good partnership with its insurance carrier, broker or agent, it would make sense to ask, ‘We’re thinking about this location. What kind of insurance and loss control issues should we be concerned about?'” Titterton said.