What is often required by insurers to assess risk before underwriting a policy?

Insurers often require a site visit to assess risk before underwriting a policy because it provides direct, firsthand information about the property or business being insured. Site visits allow underwriters to evaluate the physical condition, safety measures, and operational practices of the business, which can significantly influence the overall risk assessment.

During these visits, insurers can identify potential hazards or liabilities that may not be apparent from documentation alone. This on-site evaluation helps insurers make more informed decisions regarding coverage limits, premiums, and any specific exclusions that may be warranted based on the unique characteristics of the location or operations observed.

In contrast, while financial statements, personal interviews, and credit score checks can also provide valuable insights into a proposer's risk profile, they do not replace the need for a thorough site assessment. Such additional assessments focus more on the financial health and personal background of the proposer, which are important but may not fully encapsulate the complete risk associated with the specific business operations or property conditions.