What does loss control refer to in the context of insurance?

Loss control in the context of insurance focuses on proactive measures taken to minimize the chance of a loss occurring or to reduce the severity of such losses if they do happen. This involves anticipating potential risks and implementing strategies to mitigate them.

For instance, a business might install fire suppression systems, conduct regular safety training, or implement security measures to prevent theft. By reducing the frequency and impact of losses, organizations can improve their overall risk profile, which can also lead to lower insurance premiums over time.

In contrast, the other options represent different concepts within the realm of insurance. Increasing insurance premiums does not relate to loss control; rather, it is often a result of increased risk or claims. Calculating potential losses is more analytical and involves assessing risks but does not involve the active prevention or mitigation aspect that loss control emphasizes. Transferring risk to another party, such as through purchasing insurance, does not address the underlying risks directly and is a different strategy for managing risk, rather than controlling loss itself.